Asset Allocation & Your Investment Plan - A Blueprint For Wealth

Asset Allocation & Your Investment Plan - A Blueprint For Wealth: "Many of the wealthiest people in the world owe their fortunes to different types of residual income – from stocks and bonds to investment trusts, real estate, commodities and more. In this chapter we’re going to discuss the importance of asset allocation – how you spread your assets into different types of products (from safe to speculative).

When we talk about asset allocation we refer to the various vehicles in which we invest our cash. We can split our assets into three specific classes – security, buy/hold and speculative. It is advised that the largest chunk of your assets should fall into the security (approx 70%) bucket and this includes assets such as cash, ISAs, pension funds, home of residence, safe bonds and government securities. These are the safest of assets."... (Click on title link above to read entire article) ...