In life, balance is everything — whether it’s finding time between work and family or maintaining a healthy diet.
The same goes for investing. Having a balanced, and occasionally rebalanced, portfolio helps you have the right mix of investments like stocks, bonds, and cash for your individual needs.
This “mix” — known as asset allocation — should reflect your personal comfort with risk, your investment goals, and how long you have until you need the money. Your ideal mix will change as your life changes. Younger investors might favor stocks for growth. As you are near retirement, you’ll likely focus more on income and stability.
Over time, the value of each investment may change, causing your portfolio to become unbalanced. Rebalancing helps you adjust to this or as your goals evolve. So, indulge in a few snacks while following a healthy diet. But take time to consider balance in your investments as well.
This content was provided by Edward Jones for use by Linda Drake, your Edward Jones financial advisor, at (480) 985-2651. Edward Jones, Member SIPC