Asset Allocation


	*Preparing for your* future...**

Asset Allocation

Determining which assets to invest in is sometimes seems to be the most difficult part. However, several studies have been conducted (see chart below) that illustrate that individual stock selection is actually less of an important factor then having a diversified portfolio. This suggests that the use of an asset allocation strategy might be the best approach.

What is asset allocation... it is a disciplined, long-term financial strategy for investing money into various asset classes based on your investment goals, time horizon, and risk tolerance. Sound simple...click here for some help.

Asset allocation helps you reduce investment risk and optimize potential return because you use a strategic mix of asset classes rather than try to pick the best performing investment. With asset allocation, your investment is spread among various asset classes, such as stocks, bonds, and cash.

Asset Mix Is Important

Most of your return is attributable to your asset allocation. Only about 7.5% results from other factors.

To assist you with a potential allocation mix use this work sheet: Asset Allocator

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Preparing for your future...