This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Got $1K to Invest? Think Asset Allocation

If you've got $1,000 you're just itching to invest, I have two words for you: asset allocation.

Instead of immediately earmarking your cash for a specific purpose, it might be best to take a step back first and look at where you've got your money already.

Here's why: depending on your age and your risk tolerance, you might be best served to put that money to use in a certain place -- such as stocks, bonds or cash -- where you don't have as much money as you probably should.

That's where asset allocation comes in, because it's the concept of making sure your money is spread out among different types of investments that balance risk and reward in the way that's right for you.

Your own particular allocation will vary, mostly by age; if you're 25, you have a much longer time horizon in which to make up losses from risky investments (like if you would have invested in former high-fliers like Krispy Kreme (KKD - Get Report) or Crocs (CROX - Get Report) before their stock prices tumbled precipitously) than you do if you're 75.

Cramer: Crocs Is Over (Video, Aug. 6)

To watch the video, click the player below:

It will also vary by your risk tolerance, because even if you're young, if you can't stand to see your assets decline too much in value, you may want to invest more conservatively, weighting your assets toward such investments as Treasuries and funds with an emphasis on income and asset preservation. And, it may change based on any expected major life events, such as buying a house or having children.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.43 1.90%
BAC $14.37 -2.70%
CROX $8.39 -0.36%
KKD $17.03 -1.80%
SIRI $3.96 -0.25%


Chart of I:DJI
DOW 17,762.45 -128.71 -0.72%
S&P 500 2,062.83 -18.60 -0.89%
NASDAQ 4,769.7260 -47.8680 -0.99%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs