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Here's the best way to prepare your financial future during uncertain times

Financial Markets Wall Street
Posted at 5:06 PM, Oct 27, 2020
and last updated 2020-10-27 17:35:48-04

With the election taking place, the ongoing COVID-19 pandemic and potential unknown things that could happen to affect the stock market, some may be worried about their financial futures.

Because of these things, Carl Carlson, CEO and founder of Carlson Financial, is helping break them down.

He said it all comes down to Asset Allocation. He believes that the number one most important thing to a successful retirement plan is asset allocation. That is, how much of my money should be in safe things, risky things and in-between.

Carlson added that it can be difficult to figure this out. He said this is because it is different for every single one of us. It depends on things like; how much do you spend, how much do you save, do you have a Pension, how much do you have saved for retirement, how conservative or aggressive are you, will your social security checks be small or large, how much do you want to leave to your children, etc.

For starters, you need an Income Plan and that is at the very heart of it. Carlson said you need an experienced Income Plan builder to help you figure it out. But once you have figured that out, it will tell you how much of your money should be in safe stuff, risky stuff and in-between.

Once you have figured out out how much money you should have in risky things, the next step is to figure out what sort of risky things to own. For example, Carlson said you may want to allocate your risky investments to stocks that will likely perform well under either possible administration. For instance, oil company stocks might do okay under Trump but not okay under Biden, however Amazon stock might do well under Trump or Biden. So, we might one to reallocate from Exxon to Amazon in our Risky investments.

If you don’t do this every day, then you really need to enlist some expertise Carlson suggested.