The single most important decision that an investor makes – the decision that will have the greatest impact on investment results – is the percentage of his or her portfolio to be allocated to “growth” assets versus the percentage allocated to “conservative” assets.

When it comes to investing, risk and return are inextricably linked.  Investments with a greater expected return must come with greater risk, and vice versa.  There is no avoiding this trade-off.

“Growth” assets (equities, REITs, etc.) have higher expected returns than “conservative” assets (government bonds, inflation-protected bonds, etc.), but they come with greater risk and volatility.

Determining the right balance requires a deep understanding of one’s unique goals, risk tolerance, other assets/liabilities, career arc, investment sophistication, demeanor, and other personal factors.  Because these factors are not static, the allocation decision should be regularly revisited to ensure that the portfolio continues to match the investor’s ever-evolving financial situation.

We take great care to ensure that our clients’ asset allocation strategies are continuously aligned with their unique circumstances and goals.