Accumulation of wealth remains one of the top retirement goals. Within accumulation, individual’s investment needs, asset allocation, and suitability are considered.

Investment needs refer to the amount and timing of funds prior to or during retirement. These correlate to your individual cost of living and lifestyle preferences.

Asset allocation is used to distribute your investable assets among a variety of investment categories. This process aims to reduce risk, create more reliable forecasts, and improve the risk/return tradeoff of your portfolio.

Most investors understand that as risk increases, the potential for return also increases. Suitability is determined at the individual level. There is a point for every individual where the level of risk is not worth the potential return. In addition, the choice of securities for your investment portfolio will be based on individual suitability. Basic securities are stocks, bonds, and mutual funds. Alternative investments may also be an option. Although alternative investments can provide additional diversification, they tend to involve substantial risk and limited liquidity.

Investors should note that asset allocation and diversification do not assure a profit or protect against loss in declining markets and neither can guarantee that any objective or goal will be achieved. 

Alternative investments may be illiquid in nature, redeemed at more or less than the original amount invested, are subject to special risks, and are not suitable for all investors. There is no assurance that the investment objective will be attained.

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