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Your Life's Asset Allocation Thumbnail

Your Life's Asset Allocation

A personalized asset allocation (a mix of cash, stocks, and bonds) is a key component in a disciplined investment plan. I have been collaborating with clients on their asset allocations for over 25 years. Once a client has an asset allocation that reflects their situation, they feel empowered, and have a less stressful investing experience. 

An asset allocation creates diversification. Not everything in your investment portfolio will be performing great at the same time. But mixing areas of the market that don’t always move together creates a smoother ride along the way.

Life can work that way also. 

There are usually a handful of things in our life’s portfolio that are extremely important to us. Family. Friends. Health (Mind and Body). Work. Money. Interests. Community. Giving Back.

At times, some of these elements are flourishing, while others may only be ok, or even in rough shape.

Here’s an easy example. I have a client who is tremendously successful as a lawyer. That part of his portfolio is up! His health, it could be doing better…

When one area within an investment mix gets outside of its target, we rebalance. This client needed to rebalance between his work and his health. A few less hours at his desk, a few more at the gym. The good news, he’s on his way!

Another client felt she had drifted apart from her closest friends. It was going to take time and energy. No more, “when things calm down, I’m sure we’ll reconnect.” The time to reconnect was now, so she went to work on it.  

Your life’s asset allocation can change over time. Young kids can take up a big chunk of your life portfolio. When they are off to college, or beyond, that can switch overnight. Maybe now there is time for more community involvement, or that non-profit board.

How about you?  What are the elements of your life asset allocation?

Are you overweighted or underweighted in certain areas?

How can you get back in balance?

It may take some time and deep conversations with your loved ones, but focusing on your life’s asset allocation is one more step towards Maximizing Your Return on Life. 

Shari Greco Reiches

Shari co-founded Rappaport Reiches Capital Management with one goal - to maximize the return on life for her clients. Please connect with Shari below. She loves to talk about investing, financial planning, and Barry Manilow.

The author does not intend to provide investment, legal or tax advice as these materials are for general educational purposes only. Please consult your legal, tax or investment professional for advice on your particular situation. This material is derived from sources believed to be reliable, but its accuracy and the opinions based thereon are not guaranteed. It is not intended to be a solicitation, offer or recommendation to acquire or dispose of any investment or to engage in any other transaction. Investing involves risk including the possible loss of principal. Past performance does not guarantee future results. Please refer to RRCM’s Form ADV Part 2 for additional disclosures regarding RRCM and its practices.