Asset allocation determines the blend of investments in each portfolio; the process seeks to maximize value based on one’s time horizon and tolerance for risk. A target-date fund offers specific asset allocations and investment selections for specific objectives. It automatically resets the asset mix of equities and fixed income assets in its portfolio according to… Continue reading

Strategic asset allocation is pivotal in executing investment plans. In developing strategic asset allocation, investors establish and specify their desired exposures systematic risk. Groups of assets of the same type are theoretically homogeneous in reflecting a certain set of systematic factors, and different groups of assets have different exposures to factors. The process integrates their financial… Continue reading

Astute management of investment-related taxes is a critical piece throughout the portfolio management process; tax consequences severely diminish investors’ spending power and long-term return. For wealthy families and individuals, the differences can amount to millions of dollars a year. As a result, a taxable individual investor has to accept more risk in order to get… Continue reading