Asset Allocation Implementation for Retirement Planning

John is a 45-year-old individual investor planning for his retirement at age 65. He has a current portfolio of $500,000 and seeks to implement an asset allocation strategy that balances his need for growth with a degree of risk management. Given his investment horizon of 20 years, he is considering diversifying his investments across various asset classes, including equities, fixed income, and alternative investments.

Discuss the factors John should consider when implementing his asset allocation strategy. Include considerations related to risk tolerance, time horizon, and the types of asset classes he may select. Provide recommendations for how John can appropriately allocate his assets to meet his retirement goals.