Asset Allocation and Portfolio Implementation
Asset allocation is a management process that consists of combining various asset classes (stocks, bonds, mutual funds, and more) into a portfolio. Returns are sought from the portfolio as a whole, and not each individual security. This approach to asset allocation addresses potential risk through proper diversification while also pointing your assets toward achieving growth.
While the core goal of a client’s account is to “preserve and protect,” there must be growth. Long-term success for a client is making sure that their money lasts as long as they do. In retirement, there are systematic withdrawals for income to maintain a client’s lifestyle. With this in mind, a portfolio must achieve a long-term rate of return that will either equal or exceed inflation.
Freeman & Freeman take time to make sure that every client’s income plan is catered specifically and uniquely to them. As a fiduciary, we have an obligation to ensure the appropriate products, services, and recommendations are chosen based on the clients’ best interest. Therefore, we develop your personalized asset allocation model based on individual risk tolerance, objectives, and financial needs. This is where strategic asset allocation comes into play. While every client is managed individually, the accounts are managed with a core asset allocation.
The core component of the account value is centered on market returns. Our strategies, which we manage on a proprietary basis, provide exposure to efficient asset classes that are representative of the broad market of core equities and fixed income. We also look at specific sectors. There are always individual sectors that are outperforming the broad market. As part of our asset allocation strategy, we look to high quality companies with a history of increasing dividends. These individual issues could be in the form of Real Estate Investment Trust (REIT’s), utilities and some blue-chip stocks that meet the requirement of reducing risk and enhancing returns.
It is important to understand that there is no end all be all to asset allocation. It is a constantly changing landscape and requires constant monitoring. Freeman and Freeman in their role as fiduciaries, screen various investment opportunities to insure they align with client goals and needs while factoring in risk tolerance, time frame, and income specifications.
Professional Account Management To Help Grow And Protect Your 401(K) Account
Effectively managing your investments and making informed financial decisions takes time, skill, and effort. You’ve hired your financial advisor to provide professional guidance, but there has been an important piece missing– the ability for your advisor to oversee your 401(k). We have implemented new technology from Pontera that allows us to proactively manage, monitor and trade your retirement account electronically.
Freeman & Freeman can provide comprehensive, personalized asset allocation and tax strategies across your full financial picture. We have the ability to proactively manage your 401(k) as part of your entire portfolio, so you can skip deciphering lengthy plan information and fund options on your own.
We are excited to introduce this extension of our services.
This streamlines the process by eliminating the need for you to manually provide statements and implement our advice.
This technology grants us the flexibility to maintain constant oversight of your account. We can adjust your portfolio as necessary each quarter, ensuring it aligns with your goals. Additionally, it provides us with full access to the additional investment strategies available within your plan.
You’ve worked hard to build up your savings. Make your savings work for you— studies show that professionally managed accounts generate 3-4% higher returns per year, net of fees, than investors’ self-managed accounts. When you connect your accounts to Pontera, you enable your advisor to provide tailored financial guidance.
Managing your 401(k) accounts separately from the rest of your assets can create a solid view that prevents you from taking full advantage of asset allocation and tax strategies. Pontera enables your advisor to holistically manage all of your financial accounts according to your personalized financial plan.
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Complimentary “Getting to Know Us” Meeting
525 Woodland Square Blvd.,
Suite 250 | Conroe, TX 77384
Phone: 936.283.4105
Fax: 936.283.4106
