Before you can select a target asset portfolio, it is helpful to understand the four elements of asset allocation and choose a method for how you want to allocate your investments across asset categories.
This video will help you with the process. It also introduces the forward looking, valuation based asset allocation framework used on Money For the Rest of Us.
What Should You Do Next?
Now that you have been introduced to the four elements of asset allocation, you can review specific asset class return and risk assumptions by going to Step 4: Develop Asset Class Return and Risk Assumptions.