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Retirement Weekly: This is a retiree’s most important investment decision

This post was originally published on this site

On what should you spend more time in devising your retirement portfolio:

Asset allocation (how much to allocate in the first place to equities, bonds, and so forth) or security selection (which individual mutual funds or ETFs to purchase once you’ve decided how much to allocate to a particular asset class)?

The answer from many investors and financial planners is the latter, on the theory that the factors that affect the former (age, risk tolerance, etc.) don’t change very often or by much when they do. Security selection, in the contrast, is where the greatest value gets added.

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