Today I discuss important factors to consider when trying to determine the appropriate asset allocation – between stocks and bonds. In the video, I reference two articles I wrote, linked below. The first article speaks to keeping what you earn by investing more conservatively. The second speaks to the multiple steps I take to determine the appropriate asset allocation including:

  • Keeping 8 years of cash needs in safety assets (bonds or stocks)
  • The required rate of return for your financial plan to succeed
  • The results of your risk tolerance questionnaire, including a question to think about the maximum tolerable dollar loss in your portfolio (rather than percentage loss)

Since you’re already on my website (congratulations!) please take a look around. If you think that you would like to talk with me further about how we could work together to come up with the right allocation for you, or about financial planning in general, I would love to speak with you. Please send me a message or click the green button at the top of your screen to schedule a call with me.