Profile and Performance

Asset Allocation is the most critical investment decision an investor makes. How you allocate your investment dollars far outweighs the potential effects of security selection and market timing. Selecting the proper mix should be based on objectives, time horizons, and risk tolerances. The Asset Allocation Portfolios are portfolios which represent different combinations of U.S. stock, international stock, bonds, and money market funds reflecting varying degrees of investment risk and reward.

Four portfolios are available. All plans assume the investor will be:

  • Accumulating assets over at least five years
  • Adding additional funds to the plan on a regular basis
  • Using another source of funds for emergencies

In general, the more strongly you agree with the following statements, the more aggressive your investment plan should be:

  1. My desired level of investment return is above average.
  2. I can accept occasional years with negative returns.
  3. I am willing to maintain Investment positions over a reasonably long period of time.
  4. I have prior experience with stocks, bonds and international investments.
  5. I understand the concept of investment risk.
  6. My debt level is low and credit history is excellent.

If you have some doubt about which portfolio to choose, it is usually better to choose the more conservative of the portfolios you are considering.