It's a Balancing Act
You’ve carefully weighed in your own mind how you want your retirement portfolio to look: just the right amount of your assets allocated to stocks versus fixed-income investments. You feel comfortable with the growth/income and risk profile of your portfolio, and you have carefully diversified your investments over all the investment categories, and even within each category. Then, inevitably, the market jumps up or down, and your portfolio is thrown completely off balance.
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What should you do?
First, relax. Your asset allocation guidelines are just thatguidelines. Aim to hit your percentage asset allocation targets over the long run, but be prepared to accept short-run variations caused by normal market cycles that will affect large stocks, small stocks, international stocks, and bonds differently.
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