Investing Basics: What Is Asset Allocation?

Investment advisors often talk to their clients about "asset allocation" without much explanation. Too bad, because it's worth your while as a retirement investor to understand what asset allocation is — and what it is not. Business owners understand allocation well. They have a limited amount of incoming cash to spend on growing their business, so you have to pay attention to where it goes. A restaurant owner must pay his employees, suppliers, taxes and the like. Then, if there's any profit, ...