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Five asset allocation tips for investors in their 20s, 30s and 40s.

In your 20s, 30s and 40s, you may have many financial goals, whether buying a house, attending graduate school, raising kids or starting a business. But it's also an important time to focus on growing your wealth: You have the luxury of a long time horizon, which means you can generally assume more risk in your investing strategy than someone much older. Performance Trends infographic. 9.2% average annual return on U.S. stocks. 7.0% average annual return on U.S. bonds. 2.4% average U.S. inflation rateA Regions Wealth Advisor, along with a team of investment specialists, can help you build a detailed asset allocation strategy tailored to your specific long- and short-term goals and risk tolerance — regardless of what stage of life you're in. Here, however, are five general tips:

1. Go for growth.

While there's no formula for determining the right asset allocation strategy, you will likely want to keep at least 70% of your portfolio in growthoriented assets, such as stocks, that have tended to outperform bonds and outpace inflation historically.

2. Take asset allocation to the next level.

You'll want to make sure you're diversified within each asset category. For example, the stock portion of your portfolio should include investments in companies of different sizes, sectors, and global regions. Your bond investments can include some higher-risk bonds, such as emerging-market bonds, that offer bigger yields. But be sure to include some lower- and medium-risk bonds as well.

3. Diversify further with alternatives.

Consider adding some alternative investments to your portfolio that may produce greater returns. You might spread up to 20% of your portfolio among real estate investments, natural resources, private equity and hedge funds. Keep in mind that owning these types of investments can also mean assuming more risk.

4. Don't forget tax diversification.

Consider strategies to minimize your tax bill such as tax-free municipal bonds and tax-loss harvesting. Taking advantage of retirement plans, such as 401(k)s and SEP-IRAs, that provide a tax deduction on contributions today can also help offset your tax liability as you build your nest egg. When you're young, a Roth IRA or Roth 401(k) — offering tax-free withdrawals during retirement — may be beneficial if you expect your tax rates to be higher at that point than they are today.

5. Get a Regions Wealth Assessment®.

A Regions Wealth Assessment (RWA) is an innovative wealth and risk assessment tool that helps you identify the right asset allocation. It provides a holistic overview to help you design your current financial plan for today's needs and demands, while also achieving your goals for the future. The RWA is a complimentary service and is recommended every few years or whenever you experience a major life event, such as starting a new job or business partnership, getting married, having a child or receiving an inheritance. Contact your Wealth Advisor to schedule a meeting.

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This information is general in nature and is not intended to be legal, tax, or financial advice. Although Regions believes this information to be accurate, it cannot ensure that it will remain up to date. Statements or opinions of individuals referenced herein are their own—not Regions'. Consult an appropriate professional concerning your specific situation and irs.gov for current tax rules. Regions, the Regions logo, and the LifeGreen bike are registered trademarks of Regions Bank. The LifeGreen color is a trademark of Regions Bank.

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