In this current day and age, individuals have needs and desires which they seek to accomplish. To safeguard your wealth and the ability to earn and accumulate growth, many people choose to hold insurance, as well as maintain an emergency fund for when there is a rainy day.
Accumulation planning consists of a choice of securities for your investment portfolio. Common securities or safe-havens are usually stocks, bonds, and mutual funds. Alternative investments may also be an option for the right investor. One of the advantages of alternative investments is diversification, resulting from the inclusion of investments that tend to react differently to the markets than more traditional investments.
Below are examples of alternative investments. These products generally involve substantial risk and limited liquidity.
When it comes to investing, every individual has a certain risk appetite. There are investors who like high risk for high reward or the conservative investor. However, there is a point for every individual where the level of risk is not worth the potential return. The goal of asset allocation is to provide you with the risk to return scenario so that you get a clearer picture of which bracket is most comfortable for you.