Advisor Flipbooks

15 Asset allocation based on your objectives The best way to maximize the chances of investment success is to avoid making emotionally driven portfolio changes. Yet when market volatility inevitably strikes over the course of an investment plan, many investors find it difficult to refrain from acting on their anxieties. Asset allocation can help investors remain invested and focused by aiming to minimize potential uncertainties. As your advisor, we work closely with you to: • Align major financial goals (such as retirement, education, or lifestyle) with risk tolerances—which can help improve your understanding of how their current investments support their objectives. • Allocate across a variety of asset classes and risk exposures, reducing reliance on any one source of return— with the goal of helping you achieve financial success across a wide range of economic and market scenarios. Aligning investor goals with risk tolerances * 1. DEFENSIVE AGGRESSIVE MODERATE Investment strategy risk exposure Allocating across asset classes and risk exposures 85% 5% 10% 10% 45% 45% 20% 55% 25% Sample goal: Major purchase next year Risk tolerance: Preserve wealth Sample goal: Children's education beginning in four years Risk tolerance: Balance risk and growth Sample goal: Retirement in 20 years Risk tolerance: Grow wealth Equity Fixed income Multi-asset * Risk Tolerance Assessment accounts for factors such as age, time horizon, and capacity for loss. Hypothetical example for illustrative purposes only. Subject to change. Individual circumstances may vary. There is no guarantee goals will be met.

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