Asset Allocation

it, the more changes you can make. You can also adjust your asset allocation , though it will tend to matter less than will some of these other factors such as reducing spending or continuing to work.

Stipp: Another related issue, perhaps more portfolio-related with retirement readiness, is the asset allocation . So, folks will wonder, "Do I have my assets in the right kinds of investments?" It's a common question that you get.

bonds. So, they're looking for some guidance on what is an appropriate asset - allocation mix for them, given that retirement is close at hand. Stipp: So, what are some good useful tools that I can use to at least know if I'm in the ballpark? Benz: Well, I think that Morningstar's Lifetime Allocation Indexes, which I have referred to in a lot of articles, can be a good starting point. Of course, this is off-the-shelf guidance, and it's not customized. It's not based on your individual situation, but I think it's a good way to check to see if your asset allocation is in the right ballpark, and there are separate versions, so there is a conservative, moderate, and aggressive version. That aggressive allocation index would tend to be most appropriate for people who maybe have a lot of their income needs for retirement covered through other sources. So, someone with a pension, for example, might look to the more aggressive asset - allocation mix for their portfolio because they can afford some of the ups and downs that come along with a higher equity weighting.