Free Asset Allocation Analysis for your 401k or IRA
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Asset Allocation Analysis for your 401k or IRA
by Mike Rowan, eRollover.com
As I sit here this morning watching the stock market futures tumble, I can’t help but think about investors out there who feel panic and despair about their retirement portfolios. I know that this stock market behavior over the last 2 months has been absolutely brutal and there is almost no place to hide. Even money market funds have been frozen and have required cash infusions to guarantee their liquidity.
Historically, the only thing that has been proven to prevent massive losses in your portfolio is to have an asset allocation strategy. I can’t stress how important this strategy is for your 401k, 403b, IRA, or other investment and retirement accounts. eRollover has invested in an asset allocation calculator, which can assist in setting up your plan according to your risk tolerance. This feature is free, and will actually generate a print out with its recommendations. Please feel free to utilize this feature of our site by filling out our asset allocation questionnaire.
Here is the definition of asset allocation, according to Investopedia.com.
An investment strategy that aims to balance risk and reward by apportioning a portfolio’s assets according to an individual’s goals, risk tolerance and investment horizon.
The three main asset classes - equities, fixed-income, and cash and equivalents - have different levels of risk and return, so each will behave differently over time.
Investopedia Says… “There is no simple formula that can find the right asset allocation for every individual. However, the consensus among most financial professionals is that asset allocation is one of the most important decisions that investors make. In other words, your selection of individual securities is secondary to the way you allocate your investment in stocks, bonds, and cash and equivalents, which will be the principal determinants of your investment results.”
As you can see, this strategy can help you to minimize risk and maximize returns over the long term. Please take advantage of our 401k and Retirement Asset Allocation Engine, and get your portfolio optimized for these turbulent market conditions.
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