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Risk Capacity and Asset Allocation Go Hand in Hand

When checking your mix of stocks, bonds, and other assets, keep your time horizon for the money top of mind, says Christine Benz.

Christine Benz: Hi, I’m Christine Benz for Morningstar.com.

Investors spend a lot of time thinking about the specific securities they'll use to populate their portfolios, but their allocations to the major asset classes will actually be a more important determinant of how their portfolios behave. If you're tuning up your portfolio, checking up on your asset allocation should be near the top of your checklist.