What is an Asset Allocation Plan? What does it contain?
A. AAP is your financial plan to meet your goals. It should specify what percentage of your portfolio should be in US stocks, International stocks and bonds. It should also contain your reason for choosing the percentages and also how it is going to very over time (80/20 at age 30 and 60/40 at age 50, etc). You should periodically (every 3-5 years) review this plan. But you should not be making drastic changes to the initial plan, unless something changed dramatically.
