Financial Resources Group believes asset allocation plays a critical role with your retirement portfolio. We believe investors should focus more on avoiding loss of principal in retirement (or, as they near retirement) simply because they do have the time to replace monies lost if there is a market downturn.
For many years, a widely used rule of thumb used by financial professionals and investors to simplify asset allocation was the rule of 100. It states that as an investor gets older, the percentage of safer investments should reflect their age. For example, a 70-year old should have 70% of their investments with principal protection and only 30% in more “risky” investments. This rule is a helpful starting point for asset allocations.