What are the general asset allocation percentages by age group?

There are many different techniques when it comes to investing your money. In order to get the highest returns you have to have good techniques. The people who do the best in investing are the people who have techniques for where they invest, when they invest etc. If you do not have good techniques you could end up losing a lot of money. The best thing to do when investing is to find some techniques that work for you and then practice them until you get good at investing and start getting the returns that you would like.

One technique that people use is called asset allocation. Asset allocation helps you invest your money and reduce the risk. It is a way to keep your money going on a consistent upward trend rather than up and down and all around. When you come up with an asset allocation plan it means that you invest your money in many different places rather than in one stock or one bond. In asset allocation you invest in stocks, bonds, money market etc. In is unlikely that all of these things would go down at the same time so it is pretty certain that you will always be making money. The question is whether or not that money has a higher return than you could get in a bank or somewhere else.

When you come up with an asset allocation plan you have to consider different things about yourself and your goals. You have to determine what you goals are whether long or short-term. You have to determine what type of investor you are. Do you want to keep your money safe or are you willing to take risks? You also want to consider inflation. You want to invest enough that your returns will keep up with inflation. It will do you no good if the cost of living goes up higher than the money you have.

There is also another factor to consider when you determine your asset allocation plan. This is your age. Depending on your age you will want to invest different percentages of your money in different areas. Depending on how old you are you will want to put more or less in stocks and more or less in bonds.

For someone in their sixties it is typical that they will be advised to put about 65 percent of their money in bonds. That is a much larger percentage than there is for anyone younger than sixty-five. You would want to invest thirty percent in different stocks. You would probably want to put about ten percent in international stocks, fifteen percent in large cap stocks and five percent in small cap stocks. The other five percent should go in the money market.

For someone in their fifties these percentages are different. You would only want to put forty percent of your money in bonds and the rest would go towards stocks with zero percent in the money market. You would want to put about thirty percent in large cap stocks, ten percent in small cap stocks and twenty percent in international stocks.

The person in their forties also has different percentages than either of these two. Their percentages are more spread out and closer to being equal. This person would only want twenty percent in bonds. Like the person in their fifties they would not want anything in the money market. For stocks they would want forty percent in large cap stocks. They would also want twenty-five percent in international stocks and fifteen percent in small cap stocks.

All these percentages are what are recommend for the different ages. They are based upon the fact that the older person will want to make money faster while the younger person has more time to wait before they will need their money.