Home What We Offer Investment Allocation

Investment Allocation

Home What We Offer Investment Allocation

Investment Allocation

by jonathan

Investment Allocation: Maintaining Returns While Managing Risks

Every investment involves some level of risk. Even certificates of deposit (CDs)—which are traditionally considered “secure” because, unlike other investment securities, they can be insured and offer a fixed rate of return—carry the risk that the rate of return may not be enough to outpace inflation and taxes. Given that some degree of investment risk is unavoidable, your goal should be to maintain, and ultimately increase, your investment returns while managing risks.

Asset allocation does not eliminate risk, but it can reduce your exposure to extreme highs and lows in performance. By effectively diversifying your portfolio among different classes of investments (e.g., stocks, bonds, cash equivalents, etc.), we can help you:

  • Help preserve capital
  • Increase liquidity
  • Decrease portfolio volatility

Be aware that diversification and asset allocation do not assure a profit and does not protect against loss in declining markets.