February 22, 2018

Investment Planning

Implement a strategic asset allocation to manage investment objectives based upon risk tolerance, time horizon, liquidity and income requirements. Investment plans should be flexible enough so that tactical alterations can be made as market conditions dictate.

Investment Planning Major asset classes include:

  • Domestic equities (value and growth)
  • International equities (value and growth)
  • Fixed income (short, intermediate and long-term maturities)
  • Alternative fixed income (bank loan vehicles, floating rate notes, high yield bonds, and convertibles
  • Other non-correlated investments (real estate “REIT’s”, M & A arbitrage, managed futures, oil royalty trusts etc.)

“Asset allocation is the process of combining different asset classes and styles of investment management in a portfolio to obtain an efficient risk/return model.”
– Dr. Harry Markowitz, Nobel Prize Winner

Asset allocation does not ensure a profit or protect against loss. Tactical allocation may involve more frequent buying and selling of assets and will tend to generate higher transaction cost investors. Investors should consider the tax consequences of moving positions more frequently. All investing involves risk, including the loss of principal.