Asset Allocation

Asset allocation is the process of selecting a mix of asset classes that closely matches an investor’s financial profile in terms of investment preferences and tolerance for risk. It is based on the premise that different asset classes have varying cycles of performance and by investing in multiple classes, the overall returns will be more stable and less susceptible to adverse movements in any one class.

Why Asset Allocation is Important

All investments involve some sort of risk, whether it’s market risk, interest risk, inflation risk, liquidity risk or tax risk. An individualized asset allocation strategy seeks to mitigate the risks of any one class through diversification and balance.

What We Can Do for You

  • Educate you on the options available and what risk/rewards each entail.
  • Develop your individual strategy, through collaboration with you, to reflect your desired goals, priorities, investment preferences and tolerance for risk.
    • Investment Objectives – What do you hope to achieve using your investment dollars – improve current lifestyle, achieve capital growth, fund a specific goal such as buying a house.
    • Risk Tolerance – This reflects your comfort level with market fluctuations that result in losses. Inflation and interest rates also need to be taken into consideration.
    • Investment Preferences – An investor may prefer one asset class over another based on a certain bias or interest towards the characteristics of that class.
    • Time Horizon – The length of time you are willing to commit to achieving your goals.
    • Taxation – Investing in a mix of asset classes will have varying tax consequences.
  • Frequent Reviews - To achieve success it is important that we monitor your advisory account and meet with you periodically. About the only certainty when it comes to the financial markets is that they will change and so will your financial situation. Through market gains and losses, a portfolio can become unbalanced, and it is important to make adjustments.