Investors are generally aware that they should create an asset allocation plan and revise it as they age and their situation changes. In practice, though, many investors do not change their asset allocation in a disciplined way. In fact, many investors do not even have an asset allocation plan. Instead, they tend to select an investment because their stockbroker or a friend recommends it, or they buy a stock because it happens to be the “hot” stock that everyone’s talking about. They never stop to think about how their new investment fits into their investment portfolio. Describe your investment behavior. Have you worked out an asset allocation plan? If you have a plan, do you think about how each new investment will fit into it? If you don’t have a plan, do you think the lack of one will affect your personal finances?