CEOs do it’ athletes do it; in fact, anyone who needs to be able to achieve a certain level of performance in order to achieve a specific goal constantly assesses where they are in relation to where they want to be. This is to ensure that available resources are being utilized optimally at all time.
For as long as there has been stock markets, investors have intuitively known that expectations of returns come with commensurate expectations of risk; the higher return one expects the greater the risk one assumes in order to achieve it.
A recent survey indicates that an increasing number of high net worth investors are willing to pay for solid, unbiased, fee-only investment advice, which is not surprising considering the challenges of today’s markets.
Many investors have heard the term “asset allocation” at one time or another. From the first time we sign up for a 401k plan at the office all the way through the conversations we have with financial planners in retirement we are bombarded with messages about the importance of proper asset allocation.