Asset Allocation Modeling
Find Out Your Recommended Allocation
Click here to complete the risk profile questionnaire and find out your recommended allocation.(Note: you will be redirected to a new web browser window)
What is Asset Allocation?
Asset allocation is an investment strategy that seeks to reduce investment risk, while maintaining a desired rate of return, by spreading an individual’s investments over a number of asset types. Asset allocation is based on a number of factors including: Investment Goals, Time Horizon, Liquidity Needs, Risk Tolerance, and Economic Conditions.
Why is Asset Allocation Important?
Studies show that over 90% of your total return is attributed to asset allocation, and less than 10% is due to security selection, timing, and luck.*A portfolio integrating a strategic asset allocation approach heightens returns in all markets.
*Source: “Determinants of Portfolio Performance,” Brinson, Hood & Beebower, Financial Analysts Journal, 1991
How Often Should I Review My Asset Allocation?
You may want to review your asset allocation at tax time or after major lifestyle changes or dramatic market changes.
Types of Asset Allocation Models
- Younger investors and those with a higher risk tolerance will tend to concentrate their holdings in stock funds.
- Those near retirement and those with a medium risk tolerance will tend to have a balance of stock and bond funds.
- Retired investors and those with a lower risk tolerance will tend to concentrate their holdings in bond and money market funds.
If you have any questions on the types of Asset Allocation, please call our office at 763-450-1800 to speak with one of our professional consultants.
