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Your asset allocation should be based on your individual financial goals, risk tolerance, and time horizon. If you're young and have a long time horizon, you can afford to take on more risk. However, if you're closer to retirement, you may want to prioritize stability and invest in lower-risk assets. Rebalancing your portfolio periodically is also important to ensure that your asset allocation remains aligned with your goals and risk tolerance. This involves selling off assets that have performed well and buying assets that have underperformed.

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