There’s an old saying, “Don’t have all of your eggs in one basket.” And it’s a good one; especially when it comes to mutual fund investing. Asset allocation or the way your assets are diversified is very important. Most of this decision is based on your age and how long before you expect to retire. Another factor is your own personal make up. For instance, if you’re adverse to risk, you should probably avoid aggressive stock mutual funds. Remember, you don’t need to take unusually high risk to reach your financial goals. Proper retirement financial planning is reaching your financial goals with a level of risk you can be comfortable with.
