In general, this rule advocates diversifying your financial portfolio according to the following ratio: 50 percent of assets should be placed in stocks, 30 percent in income,10 percent Pre-IPO, and 10 percent gold. Depending on various factors, including personal needs, interest rates, and security risk, the asset allocation may need to change over the life span of those investments.
Because these factors can be complex due to age, risk tolerance, and time horizon, it is in the investor’s best interest to have a qualified financial advisor work with them to determine the best way to balance their portfolio in terms of asset allocation.