Financial Services   >   Asset Allocation

Asset allocation is a disciplined, long-term financial strategy for investing money into various asset classes based on your investment goals, time horizon, and risk tolerance. Asset allocation can help you reduce your investment risk and optimize your potential return because you use a strategic mix of asset classes rather than try to pick the best performing investment. With asset allocation, your investment is spread among various asset classes, such as stocks, bonds, and cash. Within these broad categories, there are different types of stocks and bonds, as well as different investment strategies, such as growth and value investment styles.

Diversification is an important benefit of asset allocation because it reduces the negative impact when there is a downturn in one asset class.

Using an Asset Allocation Questionnaire, your ISTA FSP representative will work with you to determine the asset allocation model that best fits your investment goals, time horizon, and risk tolerance. You will be able to determine whether you are a conservative or aggressive investor, or somewhere in between.