How do you decide how much to invest in stocks, and how much to invest in bonds? What about gold, Bitcoin, REITs, properties, etc? In this guide, I’ll explain how to go about in asset allocation and share what mine looks like.

Asset allocation

Everything starts off with the big picture, the strategy, and not the nitty gritty. In fact, studies have shown that asset allocation itself drives a huge amount of an investor’s portfolio return, up to 90% in some studies. By choosing the right mix of asset classes like stocks, bonds, gold, cash, real estate, cryptocurrencies and so on, you can control how risky your portfolio is, and how much in both short-term and long-term returns you can expect to earn over time. Imagine choosing an asset allocation like choosing an estate to buy a house in – do you like somewhere central like Queenstown or somewhere closer to the airport?...