What is Asset Allocation?
The short answer is “one of investing’s most important concepts”. In a nutshell, asset allocation is a process that spreads your money across different types of asset in a way that takes account of your;
· Age and time horizon
· Tolerance for risk
· Personal milestones
Here we’ll look at the bare bones of this vital component of any successful long-term investment strategy.
A key distinction
Types of asset allocation
However, regardless of the extent to which tactical allocations take place, all long-term wealth management must be dynamic. For example, the asset allocation of someone who is 25 and starting a family may change quite dramatically once they approach retirement.
Staying on track
A broad investing framework
To find out more about this, please get in touch with our Wealth Planning Team via an Investment Manager.