So where do many investors go so wrong?

So where do many investors go so wrong?

Money. It’s hard to get and easy to lose. It doesn’t take long for the wealth you’ve accumulated to disappear if you don’t manage your money well or have a plan to protect your assets from sudden calamity.

Why Is Asset Allocation So Important?


Essentially, asset allocation is the decision surrounding what percentage of your investments should be in equities vs. fixed income vs. cash. This has everything to do with your specific investing goals, even if you have many at once. 
If you don’t get your asset allocation right—let’s say your portfolio should’ve been 80% equities but it’s really 40% equities—it’s not going to matter how great your underlying investments are if the market is up and you’re missing out on major economic growth. The flip side is also true.
 If your goals and time horizon indicate you should be invested 80% in equities and you are, it may not matter as much if that 80% sits in a mediocre mutual fund, as even a mediocre mutual fund is likely to perform well if its asset class is doing well.