While everyone can agree that asset allocation is an important part of an investment strategy, not everyone is willing to employ it. Many investors would rather spend the bulk of their time searching for the latest hot investment. Why?
Asset allocation can be boring. It does not provide extravagant returns quickly. Also, the process itself can be quite daunting. There are more investment choices now than ever before and factors such as world economics, currency fluctuations, and income taxes need to be considered before making your selections. In addition, most individuals have their assets spread out among various accounts in different locations, making asset allocation even more complex.
To further complicate matters, once a portfolio is finally assembled to your satisfaction, it is usually recommended that the allocation mix be reviewed and rebalanced at least once a year.
Despite all this, asset allocation is worth the effort. It provides a disciplined approach to diversification and eliminates the need to time investment decisions.
Contact us if you’re having trouble getting started on an asset allocation plan. Together, we can design an all-weather portfolio that can help meet your long-term financial goals.