oaktree & associates
Timing rarely works, diversification does
Asset Allocation
In other words, where is my invested. This means determining how much of your money will go into stocks, bonds, cash, specialty funds, real estate, technology, health care and so on. Your allocation will be specific to you, your age, time horizon, comfort zones, tolerance for risk, and short-term needs. When completed, it will create a balance between risk and reward that meets your expectation and goals.
Unfortunately, many advisors and individuals spend little time formulating the right mix and as a result, they end up with holdings that lack inverse correlations, are not tax efficient, nor suitably matched to manage risk.
Be Consistent
Diversification reduces your overall volatility which in turn can result in increased portfolio values. For example, say there is a choice is between a portfolio that is making 13% one year and losing 23% in another year, versus the portfolio that is more consistent and less volatile – you’d probably choose the less volatile and consistent option. Consistent annual returns can result in a higher compound return.
No one has a crystal ball,
proper diversification spreads out your risk
Your goals and concerns will determine what we build for you and more importantly creating a customized asset allocation strategy that is consistent with your specific needs.
Ongoing, we continue to monitor your plan and make recommendations as needed. And when we think about why our clients have a positive investment experience – diversification “really” is the key.