What is asset allocation? From investopedia.com, it’s an investment strategy that aims to balance risk and reward by apportioning a portfolio’s assets according to an individual’s goals, risk tolerance and investment horizon.
We use state of the art software from Morningstar to determine the mix of investments best suited for the investor whether it’s for a 401k plan model or a strategy for an individual investor. We plot the various returns of assets and portfolios along an Efficient Frontier graph to determine the best risk-reward scenario for the investor. The Efficient Frontier illustrates the best possible combination of risk and return. Using Modern Portfolio Theory, helps us develop an asset allocation strategy designed to maximize return by taking the least amount of risk.