Accumulation planning addresses an individual’s investment needs, asset allocation, and the suitability of different types of securities in light of your goals and risk tolerance.

Asset allocation is used to distribute your investable assets among a variety of investment categories. This process is designed to:

  • Reduce overall investment risk
  • Create more reliable investment forecasts
  • Improve the risk/return tradeoff of your portfolio

Accumulation planning also involves the choice of securities for your investment portfolio. Basic securities are stocks, bonds, and mutual funds. Separately managed accounts, indices, option strategies, short-term assets and annuities may be used to optimize your portfolio.

Alternative investments may also be appropriate in certain situations. One of the premier benefits of alternative investments is diversification, resulting from the inclusion of investments that react differently to the markets than more traditional investments. Managed futures, angel investments, commodities, hedge funds, oil and gas, tax shelters, venture capital funds and real estate are all examples of alternative investments.