Individual Strategy

When done properly, an investor’s allocation of assets will reflect his desired goals, priorities, investment preferences and his tolerance for risk. Asset allocation is an individualized strategy, so there really neither is nor perfect mix if assets. Each individual’s strategy is built on the careful consideration of the key elements of their financial profile:
Investment Objectives: What us the investor hopes to achieve using his investment money- improve current lifestyle; achieve capital growth; fund a specific goal, such as a college education.
Risk Tolerance: This reflects the investor’s comfort level with market fluctuations that can result in losses. Inflation risk and interest risk need to be considered as well.
Investment Preferences: An investor may prefer one asset class over another based on a certain bias or interest towards the characteristics of that class.
Time Horizon: The length of time an investor is willing to commit to achieve his objectives.
Taxation: Investing in a mix of asset classes will have varying tax consequences.