Asset Allocation

Traditional Asset Allocation - the process of selecting a mix of financial asset classes - is a worthwhile process for matching a client’s risk profile and tolerance, based on the premise that different asset classes have varying performance characteristics during different market cycles. This generally has the potential effect of steadier financial performance while potentially minimizing volatility. However, during periods of extreme market stress, traditional asset allocation has been shown to fall short threatening the long-term viability of lifelong income for seniors and retirees. While no process is risk-proof, Product Allocation coupled with Time-Segmentation (described below) has provided steady inflation-adjusted income for many nationwide.

Time-Segmented Asset Allocation®

Time-Segmented Asset Allocation® (also called the Bucket Allocation Strategy®) is a  different way of financial and retirement income planning. At its core, we match our client’s assets to their income and liabilities. Put simply, we create a strategy that provides inflation adjusted income that addresses risk by giving equities time to potentially grow untouched, using an “endowment-style” process. This approach allocates assets into different time segments based on the period when those assets are expected to generate income.

Strategy-driven Process

Many retirees have a certain discomfort about the preservation of their retirement assets after spending a working lifetime building those assets to supplement their retirement income. Additionally, diminishing pensions increases this discomfort. They desire a portfolio using investments that will provide income for their lifetime and beyond. The strategy-driven approach we use to generate retirement income incorporates a time-segmented retirement income distribution process that aims to provide investors with stable income and growth, using investment products that complement the strategy.

Our Strategy

Time-Segmented Asset Allocation® seeks to provide investors with stable, predictable income while providing time for future possible growth. We use time-tested principles that are used by institutional and endowment organizations and make them accessible to all investors. We mathematically calculate your risk, inflation-adjust your income and strive to ensure a secure legacy. What results is a process that is intuitive and very clearly understandable.

Next Step

A financial plan needs to focus as much attention on wealth distribution in retirement as it does on wealth accumulation during one’s working years. Now that you have successfully accumulated your retirement assets, the only task before you is to have a secure distribution strategy. Let us create your Bucket® strategy for your review. 


All investments involve some sort of risk, whether it’s market risk, interest risk, inflation risk liquidity risk, tax risk. An individualized asset allocation strategy seeks to mitigate the risks of any one asset class though diversification, balance and product choice. Asset allocation does not ensure a profit or protect against a loss.

Individualized Strategy

When done properly, an investor’s allocation of assets will reflect his desired goals, priorities, investment preferences and his tolerance for risk. Asset allocation is an individualized strategy, so there really is no perfect mix of assets. Everyone’s strategy is built on the careful consideration of the key elements of their financial profile:

Investment Objectives: What the investor hopes to achieve using his investment dollars – improve current lifestyle; achieve capital growth; fund a specific goal, such as a college education or generate lifelong durable income.

Risk Tolerance: This reflects the investor’s comfort level with market fluctuations that can result in losses. Inflation risk, interest risk and sequence of events risk need to be considered as well.

Investment Preferences: An investor may prefer one asset class over another based on a certain bias or interest towards the characteristics of that class. Every effort is made to comply with each client’s individual preference while meeting the stated investment objectives.

Time Horizon: The length of time an investor is willing to commit to achieving his/her objectives.

Taxation: Investing in a mix of asset classes will have varying tax consequences. We seek to employ the most tax efficient methodologies.

An Evolving Strategy

A sound asset allocation strategy includes periodic reviews.

About the only certainty when it comes to the financial markets is that they will change, and so will your financial situation.  Through market gains and losses, a portfolio can become unbalanced and it may be important to make adjustments to your allocation.  As people move through life’s stages their needs, preferences, priorities and risk tolerance change and so too must their asset allocation strategy.   

Asset allocation, which is driven by complex mathematical models, should not be confused with the much simpler concept of diversification.

*No strategy ensures success or protects against loss