We developed a questionnaire to help us to understand your financial situations, your goals (short, intermediate and long-term), your willingness to accept short-term fluctuation in the value of your portfolio through a difficult market cycle, and your present and future income requirements. Armed with that information, we develop an asset allocation among equities (common stocks), fixed income (bonds), and cash equivalents.
Determining the Right Mix for Your Financial Needs
History reveals that common stocks offer overall returns fifty percent greater than any other financial asset. So we usually recommend a portfolio mix favoring that asset class. Our typical portfolios for individuals allocate roughly 60% in common stocks, 25% in bonds and 15% in cash equivalents, but we manage any combination – a pure equity portfolio, a pure fixed income portfolio or any well-defined mix of the asset classes (stocks, bonds and cash).
