How you allocate your assets in retirement depends on your goals and objectives for the assets, and the amount of growth you need to reach them. Your asset allocation also depends on your age and risk tolerance, all of which need to be factored-in each year when allocating your portfolio.

The very first step in deciding an asset allocation is to determine your total level of liquid assets, what your desired level of growth and/or income is over long stretches of time, and your tolerance for risk/volatility. Most investors need more growth over time than they think, and often times it results in investors under-allocating to stocks or other risk assets.

The key is to review your asset allocation at least once a year, to ensure you are on track to reach your goals or if you need to make adjustments.

What are Some Strategies for Diversifying a Portfolio?
What Happens if I Don’t Diversify my Portfolio Sufficiently?
How Often Do I Need to Rebalance My Portfolio?