1. Time is on your side.
Those with more years until retirement can afford to put a greater percentage of their assets in the stock market.

2. Stocks mean risk and return.
Those with a higher tolerance for volatility should put more money in the stock market than those in the same age group who have a lower tolerance.

3. Education funds need stocks.
If you're investing for your kids' education, you may want to consider putting a greater percentage into stocks than you put into your retirement investments.

4. Get professional advice.
The best way to develop an effective asset-allocation plan is to consult a qualified financial planner.

5. Allocation is the key to achieving your goals.
Studies have shown that asset allocation is the single most important factor in determining returns from investing.

6. Know your stock funds.
Before you set up your asset allocation plan, you must find out the nature of the companies purchased by the mutual funds you own.

7. Know your bond funds.
Similarly, you must learn the same about the bond funds you own.

8. Software isn't the answer.
Optimizing software can be a faulty way to devise your asset allocation plan.

9. Instead, rely on human judgment tailored to your needs and predilections.

10. Get started.
It's never too late to revamp or revise an asset-allocation plan.