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Asset Allocator
The Asset Allocator
is designed to help you create a balanced portfolio of investments.
Your age, ability to tolerate risk, and several other factors are used
to calculate a desirable mix of stocks, bonds and cash. The calculated
asset allocation is a great place to start your analysis in building
a balanced portfolio.
Definitions
| Age: |
Your current age. This is by far the most
important aspect of asset allocation. For most people the majority
of their portfolio is for their retirement. The younger you are,
the less likely your are to need this money any time soon. This
allows you to invest more agressively in stocks which have the best
long term returns. As you get older, it is advisable to move more
of your investments to securities with less fluctuation such as
cash and bonds. This can help insure the money is available when
you need it. |
| Portfolio: |
This is the total value of your investment
portfolio. Our asset allocation increases your stock exposure as
your portfolio increases. Generally speaking, larger portfolios
are less likely to leave an individual cash poor in a market downturn.
This allows people with large portfolios to invest a bit more aggressively.
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| Annual savings: |
This is the amount you will be adding to
your investments each year. Like portfolio size, the more you invest
the more aggressive your investments should be. |
| Spending needs: |
This is the percentage of your portfolio's
principal you will spend in the next ten years. For example, if
you expect to purchase a home or other expensive item you may need
to use some of your savings. The larger your spending requirement
the more conservatively you will need to invest in order to ensure
that the money is available when you need it. |
| Income needed: |
This is the percentage of income you will
need from your investments. Most people do not require any income
from their investments until they retire. |
| Tax bracket: |
The tax rate you expect to pay on your
investments . |
| Risk tolerance: |
Your personal ability to tolerate your
portfolio value fluctuating up and down. Many people overestimate
their ability to tolerate risk. Unless you can handle a 20% decline
in your portfolio during a stock market correction, you may wish
to keep your risk tolerance at or below the mid-point. |
| Economic outlook: |
This is your view of future economic growth
and the overall health of the economy. The better your outlook,
the more aggressive you can be with your investments . |
Information and interactive calculators
are made available to you as self-help tools for your independent use.
We can not and do not guarantee their accuracy or their applicability
to your circumstances. We encourage you to seek personalized advice from
qualified professionals regarding all personal finance issues.
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North
American Clearing, Inc.
1385 West State Road 434
Longwood, Florida 32750 |
Questions
or Comments regarding this website? Please contact the .
northamericanclearing.com is the online trading division of North American Clearing,
Inc.
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