REBALANCING YOUR PORTFOLIO ALLOCATIONS

Are Your Assets Properly Allocated?

by Ronald F. Stevenson, Investment Advisor Representative and Owner, American Financial Security & Barbara Clark Stevenson, Investment Advisor Representative and Owner, American Financial Security

In today’s uncertain financial landscape and based on the market run up we have seen in 2017, it is more important than ever to establish a well-maintained portfolio. It needs to meet your need for capital and also provide you peace of mind.

While there’s no simple formula to help you figure out how your portfolio should be constructed, determining the right asset allocation is step one. Consider: age, time horizon, amount of capital to invest and future capital needs.

Also be aware of your risk tolerance. Would you be willing to risk funds for the possibility of greater gains? Not everyone can handle that stress.

On the other side, avoiding investment risk isn’t always wise. It is possible for portfolios to be too conservative. Many investors seek absolute safety and keep their money in bank accounts, Certificates of Deposit (CDs) and other financial products without realizing these “safe” choices may incur risks.

These risks include investment opportunity loss and the destruction of purchasing power resulting from inflation. When investors fail to take advantage of returns that a portfolio of growth investments can produce over time, this is called investment opportunity loss. Inflation is often regarded as the silent destroyer of low-risk portfolios.

You need to find the right balance – one satisfying your risk tolerance while achieving an appropriate amount of growth and income.

At American Financial Investments LLC, we can help you create a financial strategy that fits your individualized investment objectives and goals. Allow us to help you determine your risk tolerance using proprietary surveys, analyzing your finances and discussing your retirement and financial goals.

We believe your best bet for steady, long-term investment growth is having a well-diversified portfolio. This can help protect your assets from the risks of large drops and structural changes in the economy over time.


About the Authors: Ronald F. Stevenson, Investment Advisor Representative & Barbara Clark Stevenson own American Financial Investments, LLC and American Financial Security, LLC. They specialize in Wealth Management, Retirement Income Planning, Social Security Maximization, Tax Free Income Design, Personal & Corporate Tax Preparation and Planning. For more information, call 928-771-8368 or visit AFIprescott.com, 3112 Clearwater Drive, Suite B, Prescott 86305


Advisory services offered through American Financial Investments, LLC. Insurance services and tax preparation and planning are offered through American Financial Security, LLC. The aforementioned are affiliated entities.