Asset Allocation: "Don't put all your eggs in one basket!"

Here's how the experts at Northwestern Mutual define asset allocation:

Asset allocation means dividing your investments among various asset classes, such as stocks, bonds, cash equivalents and other liquid assets. Done properly, your unique asset allocation will be based on your goals, time frame for investing and risk tolerance.

That means that when you invest your money, you've spread the opportunity for growth and risk for loss across several sources. If one type of investment isn't doing so well, you know that you have other parts of your savings that are invested in something else!

Check out the video below, and see the source linked here for more information from Northwestern Mutual: https://www.northwesternmutual.com/video/invest-with-confidence-find-your-balance-with-asset-allocation/?intcmp=LN-Page-EV-find-balance-with-asset-allocation