Best spread of risk for life savings and assets

As a general rule of thumb, investors are advised to slowly but continuously decrease their risk exposure over time. This is to ensure that retirement is reached with a good amount of money preserved in safe investments.

The importance of diversification through asset allocation is not to be overlooked, but nor is the careful and rational assessment of your own risk appetite. Asset allocation can protect your portfolio from the risks of investing exclusively in a single stock or class of securities.

The four main classes of assets are as follows:​

Stocks or equities, 

Bonds or fixed-income instruments, 

Money market or cash equivalents, 

Real estate or other tangible assets,

Your ideal spread of risk for life savings and assets will be unique to you and you alone. Hence, it is essential to obtain independent financial advice, before determining where and how to allocate your assets.