It’s Chess, Not Checkers: Creating Generational Wealth through Investing Part 2.
Part 2. Choosing your portfolio allocation.
Okay now that you know your risk profile, it’s time to position you’re pieces on the board. Remember portfolio allocation is not only your investments in the stock market, your entire portfolio is considered, including your home if you own it and the cash in your bank accounts.
To determine your percentage allocation you have to remember the relationship between risk and reward. Never forget that cash is deemed the lowest risk investment and stocks as the highest end of the risk spectrum.
Again this is the long game. Financial Independence and generational wealth are not created overnight. Pick the allocation and investments that are best suited to you and your risk profile. Then ignore everything else. This is Chess, not Checkers. The end result is the most important.