Johnston & Associates Advisors

Conventional views have espoused that our asset allocation should gradually go to a more conservative stance as we get closer to retirement.

Can you wait another seven to ten years?... Considering the roller-coaster volatility and risk of the investment markets; the following question has been asked... Are you tolerant enough to wait through another seven to ten year market cycle to get back a paper loss of 20 to 50% after a substantial market correction?Traditional allocation models may inherently encourage some diversity but are by no means a safety net. While most financial salespeople will gloss over the fund expense charges (and 12-b1 fees in no-load funds); the most common area of neglect is making sure that we maintain proper asset allocation with regards to our personal risk tolerance as we get closer to the end of our working years. How do you know if your asset allocation strategy is in tune with your risk tolerance?