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Asset Allocation


Posted on Monday, July 13, 2020 in Wealth Management

If you’re like most investors, you have different types of assets. Because one type of asset behaves differently from another in terms of risk and return, it’s important to strategically plan what portion of your investment portfolio you’ll dedicate to each type of asset.

Why is this important?

Proper asset allocation can provide the necessary diversification to help mitigate your investment portfolio from falling victim to the market’s short-term volatility. It’s easier to go about diversifying your portfolio when you first decide what percentage of each type of asset you’ll hold. All investors are unique, and since there are infinite ways to allocate your assets, your portfolio can be unique too. Your time horizon and your risk-tolerance level have an impact on how you decide to allocate your assets.

Where do I begin?

With so many different asset categories, there are multiple ways to divide your portfolio. The goals you want to achieve also are important to consider. At First Point Wealth Management, we have the expertise to guide you through these important decisions. Through a risktolerance assessment or completing a thorough financial plan, we are here to help you.

Asset Allocation Process Wheel

Asset allocation does not ensure a profit or protect against a loss.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

First Point Wealth Management is not a registered broker/dealer and is not affiliated with LPL Financial. The LPL Financial Registered Representatives associated with this site may only discuss and/or transact securities business with residents of the following state:

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