Think Twice Before Basing Your Asset Allocation on Your Age



A listener calls into the show for advice on her 401(k) asset allocation. She’s heard that you should base the allocation on your age. Listen to Ric Edelman explain why that’s not the best strategy and what you should be considering instead.

Investing strategies, such as asset allocation, diversification, or rebalancing, do not assure or guarantee better performance and cannot eliminate the risk of investment losses. There are no guarantees that a portfolio employing these or any other strategy will outperform a portfolio that does not engage in such strategies. Funds and ETFs are subject to risk, including loss of principal. All investments have inherent risks. There can be no assurance that the investment strategy proposed will obtain its goal. Past performance does not guarantee future results.

More Financial Planning Advice