title: Considerations in asset allocation: investing wisely.
abstract: BACKGROUND
  In this article, the author reviews the steps an investor should take to make sound asset allocation decisions and offers guidelines on assembling a portfolio that helps meet the investor's needs.
  
  
  CONCLUSIONS
  The most important decision in structuring a broadly diversified investment portfolio is the allocation among and within the three major asset classes: stocks, bonds and short-term reserves. In selecting the appropriate mix, the investor should weigh four interrelated factors-investment objective, time horizon, risk tolerance and personal financial situation.
  
  
  CONCLUSIONS
  A well-diversified investment portfolio and a disciplined savings program are important factors in reaching financial goals.
authors.affiliation: The Vanguard Group, Valley Forge, PA 19482, USA. ellen_rinaldi@vanguard.com
authors.forename: Ellen
authors.initials: E
authors.lastname: Rinaldi
mesh_terms: D003815:Dentists / Q000191:economics*; D005382:Financing, Personal; D006801:Humans; D007449:Investments