We are holistic financial advisors. That means we look at the whole picture—especially regarding Asset Allocation. The division of assets within an investor’s portfolio (called asset allocation) is generally accepted to be one of the most important decisions to be made in the investment process.  Widely accepted academic research* demonstrates that approximately 90% of long-term investment returns can be traced back to asset allocation.

We want to give you insight into where your invested dollars are sitting, why they are allocated as they are, and what their purpose is in your overall investment strategy.

From a financial planning standpoint, Asset Allocation can be defined as:

  • The process of investing assets in a manner reflecting one’s unique ability, willingness, and need to take risk.
  • Our Team will help guide you to discover an asset allocation strategy for your portfolio(s) based on these criteria.
  • We define the appropriate asset allocation as the one that not only brings you to your financial goal but is in line with your values. We create this with the objective that you are able to maintain your asset allocation during all market conditions. Take our two-minute risk quiz, Riskalyze.
  • Over exposure in one asset class may not be appropriate or in line with your values.

Despite what Wall Street and much of the financial media would like you to believe, the key to being an informed investor is not about being able to forecast which markets will and will not do well (and when). Instead, it’s about remaining disciplined and firmly adhering to your asset allocation plan. And that means having the courage to rebalance back to your target allocations, which can involve buying assets that have done poorly and selling assets that have done well.

This is extremely difficult for investors to do on their own, as evidence clearly shows investor propensity to “chase” winners: selling what has done poorly (at relatively low prices) and buying what has done well (at relatively high prices). Our Team will help you ELIMINATE THE NOISE during times of stress and euphoria in the market.

We practice with the belief, “The most important quality for an investor is temperament, not intellect.” (Warren Buffett)

*Source: Brinson, Singer, and Beebower, “Determinants of Portfolio Performance II: An Update,” Financial Analysts Journal, May/June 1991.

Asset allocation does not ensure a profit or protect against a loss.