We use a classic asset allocation strategy to properly manage assets for our clients. Asset allocation is a term used to refer to how an investor distributes investments among various classes of investment vehicles (e.g., stocks and bonds). This is a time-honored diversification strategy appropriate for many types of accounts, including retirement, trust, and pension accounts to name just a few. Asset allocation is one of the most important aspects of financial planning.
An example of a sound asset allocation strategy is represented in the following table:
Geneva Financial Group offers asset allocation services to our clients. While the Geneva Financial Group investment model normally fits quite well in the large cap space, it may not be appropriate for all accounts. We primarily use Stocks and Exchange Traded Funds (ETFs). We typically include small cap funds, international funds, bond funds, etc. designed to meet the precise requirements and risk tolerances of each client.
Just one example of an active asset-allocated account is represented in the following pie chart:
As is the case for the Geneva Financial stock portfolio, the asset allocation portfolio is actively managed. That is, we evaluate and rebalance your assets. This is done both by reevaluating current holdings, and by staying within guidelines in order to avoid any over-bought or over-sold position. Still, as for the Geneva Financial stock portfolio, trading is limited to control trading costs. These are passed along as lower trading fees to you.