ASSET ALLOCATION
Asset allocation is a method of combining various financial investments to give the highest return for the risk level that is acceptable to the client. If the client has no risk tolerance all investments would be placed in U.S. Treasury bills. Because the return on investment in U.S. treasury bills is low, some risk of loss must be assumed to generate a higher return. With asset allocation the portfolio is divided so that historically when one asset is improving another is down. The balance between the asset that is increasing and the asset that is down creates an even average return. Traditionally asset allocation has been 10% cash, 40% bonds and 50% stocks.
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Airline Pilot Investment Group, Inc.
1061 W. Oakland Park Blvd. * Fort Lauderdale, FL * 33311
1-888-959-2676 * info@apig.com