Do review your asset allocation
Ideally, asset allocations also evolve with time. As you approach your retirement age, financial specialists recommend switching from stocks, which are riskier, to safer investment options such as bonds and lower-risk real estate assets.
It’s also important to spring clean your investments, as some outperform others. Even if you don’t want to make major changes in terms of your asset allocation, you might need to readjust your portfolio and realign it to meet your main financial targets. Let’s say you want your portfolio to include 50% U.S. stocks, 30% international stocks, and 20% emerging markets stocks. The stocks in the United States are going through a rough phase while emerging stocks are peaking right now. To realign and rebalance your portfolio, you’ll need to sell a part of your emerging market stocks while they’re high and buy some U.S. stocks while they’re low.
