The most common problem or mistake I see among prospective clients or investors is not having the correct asset allocation in their portfolio(s). What do I mean when I say “asset allocation?” When I say “asset allocation” I mean the mix of stocks, bonds, and cash within a portfolio. Too often investor’s get caught up…
Author: Wyatt
The typical money manager uses a “risk based” approach to decide what portfolio allocation they will recommend for a client investor. Risk Based Approach: The money manager gives the client a “risk questionnaire” to fill out. The goal of this questionnaire is to assess the client’s “risk tolerance.” By inputting the risk tolerance and age…