ASSET ALLOCATION
Asset Allocation
MAINTAINING RETURNS WHILE MANAGING RISK
Every investment involves some type of risk. Even Certificates of Deposit (CDs) – which are traditionally considered “low risk” – carry the risk that the rate of return may not be enough to outpace inflation and taxes.
Therefore, given that some degree of investment risk is unavoidable, your goal should be to maintain, and ultimately increase, your investment returns while managing risks.
Managing Risk
Asset allocation does not eliminate risk, but it can help reduce your exposure to extreme highs and lows in results. Therefore, by effectively diversifying your portfolio among different classes of investments (e.g., stocks, bonds, cash equivalents, etc.), we can help you:
Preserve Capital
Increase Liquidity
Decrease Portfolio Volatility
Allocation Based on Time Frame
Allocating your assets correctly is the largest determinant of portfolio results. Because of this, we invest time to understand your unique liquidity needs, time horizons, risk tolerances, and rate of return expectations. By getting to know you, we can segment your investment strategy into one of four broad tiers that help us develop specific recommendations for you.
Our portfolio weightings to the various areas of investment markets are based on time frame and our mutually determined appropriate risk level.
Reduced Risk
Special circumstances that require a reduction in volatility
2 Years - Now
You plan to withdraw income from savings now or within two years
2-10 Years
Between two and ten years until you plan to withdraw income from savings
10+ Years
Over ten years until you plan to withdraw income from savings
Past performance may not be indicative of future results. Investing involves risk and investors may incur a profit or a loss.Keep in mind that there is no assurance that any strategy will ultimately be successful or profitable nor protect against loss. The investment profile is hypothetical, and the asset allocations are presented only as examples and are not intended as investment advice. Please consult with your financial advisor if you have questions about these examples and how they relate to your own financial situation.
