<title>Learn about asset allocation in the Lifetime Planner</title>
<category>lifeplan</category>
<klink type="cncpt">Tell me about asset allocation in the Lifetime Planner</klink>
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<content>
<p>You already know that where you put your money determines how much you'll have later. But knowing this, and knowing what to do about it, are two different things.</p>
<p>Money can lend you a hand. After looking at the current asset allocation of your entire portfolio, the Lifetime Planner checks to see where you are in your lifetime plan. Then, in your Action Plan, the Lifetime Planner maps out some ideas for how you could modify your portfolio to make it consistent with your long-term goals.</p>
<p>How does the Lifetime Planner develop its suggestions? It's all based on your lifetime plan and your current portfolio. Money looks at what you want your investments to do for you (for example, fund college in a few years or set you up for retirement). Then, using information from financial planners, Money develops a suggested portfolio allocation consistent with your age and goals. Finally, it compares that suggested portfolio allocation to your current allocation and shows you what you could do to move toward that target.</p>
<p>In the <emph>Choose the right classes of investments</emph> section of the <emph>Action Plan</emph> page, you'll see either one or two allocation charts (depending on the data you've entered), some data, and some suggestions.</p>
<ul>
<li><emph>Current Asset Allocation.</emph> This chart shows the overall asset allocation for your entire investment portfolio, including accounts held in the name of a dependent. The Expected Pre-Tax Investment Return figure above the chart is based on your portfolio's current allocation and on the expected returns you entered on the <emph>Expected Return</emph> pages. Hold your pointer over a section of the chart to see details.</li>
<li><emph>Targeted Asset Allocation.</emph> This portfolio mix is consistent with the goals and other information you've included in your lifetime plan. The Expected Pre-Tax Investment Return figure is based on the return rates you chose and the asset allocation.</li>
<li><emph>Suggested investment changes.</emph> Money compares your current portfolio with the targeted allocation and suggests adjustments you could make to your current investments to bring your portfolio more in line with your goals. It's likely you won't want to make all of these changes right away, and you don't need to. Just use them as a guide for thinking about your investing strategy.</li>
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<tease>Why does Money say it needs more information to calculate my asset allocation?</tease>
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<p>Money asks for this information to make sure the asset allocation analysis is complete. If you've recently added investments, Money might not know their asset class. To complete the information, just click each stock or fund link. You'll then be able to choose asset class information for that investment.</p>
