Determining Your Asset Class Percentages

This is the fourth article in a series on asset allocation and rebalancing. This article will focus on how to set targets for each of the asset classes you hold in your investment accounts. Previous articles introduced the concept of asset classes and periodic rebalancing. The first step is to first decide which asset classes you will invest in. The three primary asset classes are equities, fixed income and cash, but these can be broken down into an unlimited number of more specific...