Goal: The Risk Profile & Asset Allocation Matrix is designed to be used as a tool to help guide clients in assessing their risk tolerance. After an in-depth discussion, our objective is to best approximate the profile of each client in order to structure the portfolio that would most closely reflect their risk tolerance and investment return expectations.
| Risk Profile | Objective | Description | Asset Mix |
|---|---|---|---|
| 1. Low | Capital Preservation | The investor will accept lower than average returns in order to generate taxable income from principal and minimize capital loss | Equities: 10-25% Fixed Income: 50-90% Cash: 5-20% |
| 2. Conservative | Current Income | The investor will absorb some principal risk associated with changing interest rate conditions to satisfy current yield requirements. | Equities: 25-40% Fixed Income: 50-80% Cash: 5-15% |
| 3. Moderate | Income & Growth | The investor will accept some risk to achieve growth of principal while generating some current income. | Equities: 40-60% Fixed Income: 25-40% Cash: 5-15% |
| 4. Aggressive | Long-Term Growth | The investor will accept price volatility and low income in order to achieve growth of principal over an extended period of time. | Equities: 60-75% Fixed Income: 15-40% Cash: 5-15% |
| 5. Special Client Situation | All equities, all fixed income, heavy concentration/low cost basis stock, estates, real estate, etc. | N/A |