Asset Allocation: Your Biggest Investment Decision

Wednesday, August 9, 2017

Asset allocation is the investment of wealth across various asset classes, including cash, stocks, and bonds, as well as real estate or other alternatives. Devising an appropriate strategy is dependent upon exposure, risk tolerance and desired goals, all of which are weighed as part of the implementation.

Ultimately, the strategy that is developed serves as a guiding compass for achieving personal wealth goals throughout different stages of your life. When a financial plan is created, it typically accounts for everything from income and cash flow to your retirement and estate plans. But that doesn’t mean things are set in stone.

In order to help you seize control, an effective approach focuses on developing and implementing a strategy that achieves meaningful diversification through regular monitoring and review. This means first defining your goals and assessing risk tolerance, then choosing the investment vehicles best-suited for those goals and measuring risk-adjusted returns accordingly.

Strategic allocation is an ongoing process that requires flexibility and a willingness to adjust. The ability to adapt to changing market dynamics and significant life events is essential to maintaining a successful strategy. Portfolio decisions, therefore, should reflect these analyses and any changes to your goals and circumstances.

Interested in learning more? Read our Asset Allocation Strategies whitepaper.

Private Wealth Updates

William Blair produces educational and timely communications on a variety of wealth management topics of interest to individuals and families at all generational stages of life, philanthropic foundations, and not-for-profit organizations.


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