Understanding Asset Allocation: An Intuitive Approach to Maximizing Your Portfolio

Introduction: You Can Do Better

The critical variable in meeting an investment goal is asset distribution between classes. This is no secret. But, achieving success in asset allocation is easier said than done. I believe a better asset-allocation framework exists than most investment firms offer today. In short, where most plans tend to be rigid, flexibility is what investors most need. The majority of plans limit choices, but nothing should be taken off the table—although investors should have the best framework in which to make their decisions.

Of course, every investment plan is set up so the investor comes out ahead. But you can do better than just come out ahead.

Investments are made to meet the investor’s goals and lifestyle needs and not ...