Asset Allocation

Asset Allocation

At Burr Capital Advisors, we are here to provide financial planning for every stage of life. Whether you’re starting to invest your money for the first time, or you’re wanting to update your asset allocation to achieve new goals, we’re here to help every step of the way. There are several reasons why asset allocation is essential when it comes to managing your investment, including: 

  1. Diversifying Your Portfolio - Owning different types of investments helps lower the risk of your overall portfolio. 
  2. Long-Term Investing - Financial goals can shift and vary depending on a variety of factors, including your age, financial situation, and progress towards your financial goals. 
  3. Protection From Market Turbulence - By diversifying your portfolio, if an unexpected market storm hits, your entire portfolio won’t be hit as hard seeing as you have allocated your assets across a variety of classes. 
  4. Flexibility For Financial Goals - Every stage of life brings a different focus and need for finances. Asset allocation allows you to determine your investment risk depending on what your financial goals are at that time.

What Is Asset Allocation? - Asset allocation is an investment strategy that financial advisors use to help their clients balance risk and reward. Depending on the client’s financial goals, risk tolerance, and investment horizon, our financial advisors at Burr Capital Advisors will help allocate the client’s assets into a variety of asset classes. In doing so, the assets will have different levels of risk and return, meaning they will fluctuate differently over time. Over time, and depending on the client’s financial goals, our financial advisors can shift the assets to ensure the client’s portfolio is set up for success.  

What Is An Asset Class? - Simply put, an asset class is a group of investments that have similar characteristics, and are subject to the same laws and regulations in the marketplace. There are three main asset classes that have been used historically, including equities, also known as stocks, fixed income, commonly referred to as bonds, and cash. Other asset classes can include commodities, real estate, and more. Assets are both tangible and intangible, and are bought and sold by investors to generate additional income for either a short-term or long-term intent, depending on their financial goals. 

Why Is Asset Allocation Important? - Just like no two people are the same, no two investments are the same. That’s why when it comes to creating a strategic plan for a portfolio, many factors are taken into consideration to determine the best course of action. For example, if someone is wanting to save up to buy a car in the next few years, their asset allocation strategy is going to be different than someone that is saving for retirement. The balance of risk and reward is depending on the amount of time the investment will be active in the marketplace. 

You know your financial goals. We are experts in portfolio management to help you achieve those goals. We will meet you at whatever stage of life you’re in and help you invest in your future. Contact us today to learn more.