Asset allocation is the process of dividing your investment portfolio among different asset categories, such as stocks, bonds, and real estate. The goal is to balance risk and reward based on your financial objectives, risk tolerance, and investment horizon. A well-diversified asset allocation can help protect your portfolio from market volatility. By adjusting the allocation as your goals evolve, you can ensure that your wealth management strategy stays on track. Asset allocation is not a “set it and forget it” decision—it requires ongoing review and adjustments as market conditions and personal circumstances change.