Asset allocation means that you are putting your money in different places. You do this by diversifying your money with different types of investments like stocks, bonds, and mutual funds.
You buy these investments, then sell them for profit when you need the money or think it's a good idea. This can help reduce your risk. If one investment loses money, you have another one that could help. It’s a good way to give yourself some breathing room.
Here are some things to think about: