Life Saving and Asset Risk Spreading

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.