Bells and whistles

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Top things to know What is asset allocation anyway? Finding the right mix Bells and whistles

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There's been debate in recent years about the value of software programs in building an asset allocation plan.

Though there's nothing wrong with using software to take the numerical drudgery out of the task, these programs pose a problem: They lend an air of scientific certainty to a task that involves the subjective.

If asset allocation were really a pure science, then all programs would deliver the same results when fed data about the same investor. But they don't. The results vary widely.

The process of building an asset allocation plan involves judgments, and there is no such thing as a standardized solution. The matrix of possible asset allocations is virtually infinite, depending on your situation. The most important point to remember is that successful asset allocation depends on personal variables, such as one's age, risk profile, etc.

For more help building an asset allocation plan, try CNNMoney's Asset Allocator calculator. 

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