Asset allocation is, admittedly, a dry topic. However, it is very important for your retirement success. If you have too much of your portfolio allocated to safe, secure, and conservative investments, your savings may not keep with inflation.
However, if you have too much of your portfolio allocated to market based investments (like mutual funds, bonds, ETFs) you could wind up having to withdraw funds from your portfolio while the market is depressed.
The right portfolio allocation for you will depend on your preferences related to risk tolerance, time horizon of when you need to withdraw your savings for income needs, and the level of your other income sources.
Here is a very good article that talks about why your portfolio needs to have the proper balance of assets. The story of the woman who is running out of money in this article is very disheartening. Especially since it could have been avoided with the proper retirement income planning and using a customized allocation between conservative investments (like fixed annuities) and more growth oriented investments (like managed money, mutual funds, bonds, ETFs).
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