To protect their ability to earn and accumulate wealth, many people choose to hold insurance, as well as maintain an emergency fund, to guard against depleting savings that are intended for other goals.

Asset allocation1 is used to distribute your investable assets among a variety of investment categories. This process can:

  • Manage overall investment risk
  • Create more reliable investment forecasts
  • Improve the risk/return tradeoff of your portfolio

Accumulation planning also involves the choice of securities for your investment portfolio. Basic securities are stocks, bonds, and mutual funds. Separately managed accounts, indices, option strategies, short-term assets, and annuities are also used to optimize your portfolio.

Alternative investments2 may also be an option for the right investor. One of the premier benefits of alternative investments is diversification1, resulting from the inclusion of investments that react differently to the markets than more traditional investments. Managed futures, angel investments, commodities, hedge funds, oil and gas, tax shelters, venture capital funds, and real estate are all examples of alternative investments.

Some situations require different expertise than typical stock and bond portfolio implementation. These situations usually pertain to employer-related retirement plans and stock options, margin strategies, and real estate exchanges

Most investors understand that as risk increases, the potential for return also increases. But there is a point for every individual where the level of risk is not worth the potential return. The goal of asset allocation is to provide you with the risk/return scenario that is most comfortable for you.

Once you have accumulated capital, our professionals can provide valuable services that help you optimize the return on your investments, including:

  • Portfolio asset allocation1
  • Regular portfolio rebalancing/reallocation3
  • Diversification strategies1

1 Neither Asset Allocation nor Diversification guarantee against loss.  They are methods used to help manage investment risk. 

2  Alternative Investments are often speculative, lack liquidity, lack diversification, are not subject to the same regulatory requirements as securities and mutual funds, may involve complex tax structures and delays in distributing important tax information, and may involve substantial fees. These products often execute trades on non-U.S. exchanges. Investing in foreign markets may entail risks that differ from those associated with investments in U.S. markets.  These investments may not be appropriate for all investors.

3 Rebalancing assets can have tax consequences.  If you sell assets in a taxable account you may have to pay tax on any gain resulting from the sale.  Please consult your tax advisor.