While asset allocation is the process of diversifying a portfolio between asset classes, strategy diversification is the process of diversifying a portfolio within an asset class in order to minimize volatility or capitalize on opportunity. For example, dividend paying stocks may behave differently than high growth technology stocks and inflation linked bonds may behave differently…
In investing, the principals of diversification and asset allocation are frequently used synonymously but they are distinct concepts. Diversification is a broader risk management technique than asset allocation. While asset allocation is a form of diversification, there are also other ways to diversify portfolios, some of which are discussed below. For example, the volatility of…
Market Commentary: Trumped US stock markets have been on a furious pace since the results of the 2016 election, with what analysts and talking heads are calling the ‘Trump Rally.’ Led by small cap stocks, we have seen a year’s worth of gains happening over a 3-month span. With stocks at or near all-time highs,…
A cash balance pension plan is a type of defined-benefit plan under which an employer credits a participant’s account with a set percentage of yearly compensation plus interest charges. Key Benefits: Maintained on an individual account basis Generous contributions limits that increase with age Can be used in association with a 401(k) plan Can be…
Customizing an investment strategy to meet our clients unique going requires the use of a wide selection of securities provides you with the right choices to build a diversified portfolio and reach your goals. Plus you’ll get clear, reliable help to guide your investing decisions from experts in the industry. Common Investment Securities Mutual…
A health savings account (HSA) is a tax-advantaged medical savings account available to people enrolled in a high-deductible health plan (HDHP). The tax benefits of an HSA make it an attractive way to save for current and future medical expenses. Benefits of an HSA Contributions are tax deductible Earnings grow tax-free Distributions are tax-free…
The Uniform Gifts to Minors Act (UGMA) and the Uniform Transfer to Minors Act (UTMA) established accounts that allow adults, usually the parent, to transfer assets to a minor without the need to establish a special trust. The beneficiary assumes full control at age of majority (18 or 21 depending on the state). The main…
