The old advice of don't put all your eggs in one basket is especially true in investing. We can expect stocks and mutual funds to move up and down in price each year. Investment prices move at different rates at different times, so spread your money around. Because nobody knows when the market will go up or down, it is important to diversify in different industries and types of investments to spread your risk. Mutual funds are one way to diversify.

The younger you are the more stocks (equities) you should have to allow your money to grow. As your goals and age change, you may choose to put more funds into income producing (fixed-asset) investments and less into growth. Be sure you don't have too much duplication of objectives (for instance, you probably don't need two growth and income funds).

Most people use a mathematical method to determine what portion of their portfolio should be devoted to various types of investments. The securities you select will be determined by your age, income, job security, marital status, tolerance for risk, general financial needs and the current economic conditions of the country. Think of your portfolio as a pie. The stocks, bonds, mutual funds, and savings you choose are the filling. Although there is no right portfolio for everyone, a general guideline is:

• Stocks and/or mutual funds: 40 to 80 percent (equities you own for growth and/or income)

• Bonds: 20 to 50 percent (fixed assets for income)

• Cash equivalents: 10 to 25 percent (for liquidity)

Use the Asset Allocation worksheet to plan what best meets your needs.