A truly diversified portfolio isn’t a mix of stocks and bonds, but rather it includes some genuinely conservative investments that were created for Distribution Land. Why? Because stocks and bonds are subject to constant highs and lows, these fluctuations aren’t well tolerated by a portfolio where money earned is used as income rather than savings.

Is Your Portfolio Diversified_ The Ugly Truth About Stocks and Bonds

In my opinion, other types of investments should supplement stocks and bonds, like insurance products for example.

Professor Moshe Milevsky, a researcher, author, and speaker on personal financial planning, talks about not just asset allocation, but product allocation for retirement. This asset allocation chart, created by Professor Milevsky, shows allocation includes insurance annuities, life insurance, and other products.

For more guidance on asset allocation, visit www.familywealthadvisory.com.