Our Investment Philosophy

Asset Allocation

An asset allocation plan is customized and tailored to each individual investor based upon their individual risk tolerance, goals, and timeframe to meet those goals.  Questionnaire

The practice of Asset Allocation is based upon numerous research studies, most notably that of William Sharpe and Harry Markowitz.  They won the Nobel Prize for economic sciences, for their contributions to the science of portfolio management.  Their studies suggest that a well diversified Asset Allocation plan may effectively reduce risk while maintaining or possibly even increasing the portfolios rate of return.  More importantly, asset allocation has been shown to be responsible for up to 91.5% of a portfolio's performance.

For more information, take a look at the Importance of Asset Allocation .

As practitioners of Asset Allocation, we help you invest your money in as many asset classes as appropriate, in amounts determined by your your specific, customized investor profile.  An asset allocation plan can be tailored to meet your needs as determined by your risk tolerance, your goals and the timeframe for meeting those goals. 

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What are the different asset classes?  Here are some examples:

• Large Cap Stocks, Mid Cap Stocks, Small Cap Stocks , International Stocks , and Bonds

Take a look at this Callan Chart and you will see that every year (give or take) a different asset class is the top performing asset class.  By subscribing to this theory, you may be more likely to have at least a portion of your money invested in a top performing asset class, year after year.. 

Once you have established your asset allocation, it is now time to invest your money.  We suggest that you make sure to take your total financial picture into account; your IRA, 401k, bank account, etc. all should be considered.  Take a look at Our Process.

 Asset allocation does not assure a profit or protect against a loss in declining markets.