Determine Asset Allocation

Before investing, it is critical to know what types of securities should be sought. Historically, about 90% of the rate of return of a portfolio is determined by asset allocation. Further, cash needs, time horizon, and risk tolerance need to be considered. Money earmarked for retirement in 3 decades should be handled differently than funds needed for a house in 3 years or tuition in 3 months.

 

When opening an account, it is important for us to know if we are managing all of your investment assets or only a portion. If we are handling the bulk of your liquid wealth, we will execute a thorough assessment of your goals, attitudes towards risk, and other facets that should affect the manner of managing your funds. If we are assigned only a portion of your wealth, we will work with you to determine the investment objectives of our part of your portfolio.

 

Before investing, you (and we) should know your appropriate asset allocation, and what part we will be managing.