Asset Allocation
Proper Asset Allocation is Key to Successful Investing
Asset allocation is one of the most important determinants of investor success.
Renowned investing expert Roger Ibbotson identified that more than 100% of variability
of a fund's investment return is due to asset allocation. Participants who have
the opportunity to receive professional advice regarding appropriate asset allocation
and ten risk-calibrated index portfolios may significantly improve their odds of
investing success.
IFA’s research has demonstrated that proper asset allocation should be determined
based on 30 years or more of historical risk and return data, not a few years of
random noise or speculation about the future. Given this, an advisor who provides
ample data about style pure indexes may offer individuals a higher probability of
achieving their expected return, thus facilitating the very purpose of retirement
investing — income replacement. This knowledge diminishes the utility of a fund
line-up that consists of actively managed funds.
IFA’s 401(k) services provide ten risk-appropriate asset allocations suitable
for investors from very conservative to very aggressive and various levels of intermediate
risk. IFA’s asset allocation models are designed to capture specific risk exposures
over very long periods of time—investing science,
not pure speculation.
Click here to take the Risk Capacity Survey to find out which is the right portfolio
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