You Need an Asset Allocation Plan Even More in a Bull Market

Stocks are on a tear, and it's tempting to run full-speed-ahead with them, but that could get you in trouble. Markets can turn on a dime. That's why you need an asset allocation plan -- and possibly some fixed annuities.

An asset allocation plan means that you set the percentages you put in equities (stocks or stock funds) and fixed income, which includes savings accounts, money markets, CDs, bonds and fixed annuities. Your asset allocation should not change in the short term, but it will change over the years. As you approach retirement, you'll normally decrease the percentage in stocks and boost your share in safe investments. Once you're retired and begin withdrawing your savings, you'll