Broker Check

Asset Allocation

Asset allocation is more than just balancing stocks, bonds, and cash in a portfolio. At Rinvelt & David, we employ a unique approach that involves layering assets in sleeves to ensure diversification even within portfolio models. This approach helps us create customized investment strategies that align with our clients' specific goals and risk tolerance.

What is Asset Allocation?

What is Asset Allocation?

Asset allocation is the process of dividing an investment portfolio among different asset categories, such as stocks, bonds, and cash. The goal of asset allocation is to create a portfolio that maximizes returns while minimizing risk. It is important to note that asset allocation is not a one-time event, but an ongoing process that requires regular review and adjustments.

The Rinvelt & David Approach

We take asset allocation to the next level by employing a unique approach that involves layering assets in sleeves. These sleeves represent a portfolio's complete value and are structured to account for the needs and goals of everything from long-term assets down to tomorrow's cash needs.

By dividing a portfolio into sleeves, we can manage each sleeve separately, which allows us to diversify within each sleeve, reducing the overall risk of the portfolio. This approach helps us create customized investment strategies for each of our clients.

Managing the Sleeves

Managing the sleeves requires discipline and the assistance of third-party money managers who balance and rebalance as needed. Our investment team is responsible for overseeing the process, which involves ongoing analysis of market conditions as well as client time horizon, risk tolerance, and cash needs, and adjusting the sleeves as needed to ensure optimal performance.

The investment sleeves are uniquely tailored to the client’s long-term, intermediate-term, and short-term capital needs. Special attention is given to the production of income within all sleeves to accommodate specific lifestyle needs and desires.

Why Asset Allocation Matters

Effective asset allocation is critical to achieving long-term investment success because it allows investors to diversify their portfolios among various asset classes, such as stocks, bonds, and cash. By diversifying, investors can spread their investments across different sectors, industries, and geographic regions, reducing complete exposure to any one particular market or security.

This diversification helps to reduce the overall risk of a portfolio, as the impact of any single market event or economic condition is mitigated by spreading assets out rather than keeping them all together. As a result, investors are better able to weather market downturns, which can help to preserve their capital and avoid significant losses.

At Rinvelt & David, we believe that successful investing is about more than just chasing returns - it's about creating a comprehensive plan that aligns with your unique financial situation. We are passionate about helping our clients navigate the complexities of investing and focusing on their financial future.

Whether you're just starting out or looking to grow your wealth, our team is here to help you create a personalized investment strategy. Contact us today to learn more.

Let's Connect

Thank you!