Skip to main content

Valor Private Wealth LLC

Greensboro
(336) 338-7542
Asheville
(828) 595-4045

[vpw@lpl.com]
  • Client Login 
  • Start your Plan 

Valor Private Wealth LLC

  • Home
  • About 
    • Meet The Team
    • Our Philosophy
    • Our Process – the v3 formula
    • Our Broker Dealer LPL Financial
  • Our Services
    • Investments
    • Insurance
    • Retirement Planning
    • Asset Allocation
    • Business Succession Planning
    • Charitable Giving
  • Resources 
    • Blog
    • Useful Websites
    • Calculator Library
  • Research
    • Market Insight
    • Weekly Market Commentary
    • Weekly Economic Commentary
    • Bond Market Perspectives
  • Contact

    You are here

  1. Home
  2. Our Services
  3. Asset Allocation

Asset Allocation

Asset allocation is the process of selecting a mix of asset classes that closely matches an investor’s financial profile in terms of their investment preferences and tolerance for risk.  It is based on the premise that the different asset classes have varying cycles of performance, and that by investing in multiple classes, the overall investment returns will be more stable and less susceptible to adverse movements in any one class.

All investments involve some sort of risk, whether it’s market risk, interest risk, inflation risk liquidity risk, tax risk. An individualized asset allocation strategy seeks to mitigate the risks of any one asset class though diversification and balance. Asset allocation does not ensure a profit or protect against a loss. 

 

Individual Strategy

When done properly, an investor’s allocation of assets will reflect his desired goals, priorities, investment preferences and his tolerance for risk. Asset allocation is an individualized strategy, so there really is no perfect mix of assets.  Each individual’s strategy is built on the careful consideration of the key elements of their financial profile:

Investment Objectives: What it is the investor hopes to achieve using his investment dollars – improve current lifestyle; achieve capital growth; fund a specific goal, such as a college education

Risk Tolerance: This reflects the investor’s comfort level with market fluctuations that can result in losses.  Inflation risk and interest risk need to be considered as well.

Investment Preferences: An investor may prefer one asset class over another based on a certain bias or interest towards the characteristics of that class.

Time Horizon: The length of time an investor is willing to commit to achieving his objectives.

Taxation: Investing in a mix of asset classes will have varying tax consequences.

No strategy assures success or protects against loss.

An Evolving Strategy

A sound asset allocation strategy includes periodic reviews.

About the only certainty when it comes to the financial markets is that they will change, and so will your financial situation.  Through market gains and losses, a portfolio can become unbalanced and it may be important to make adjustments to your allocation.  As people move through life’s stages their needs, preferences, priorities and risk tolerance change and so too must their asset allocation strategy.   

Asset allocation, which is driven by complex mathematical models, should not be confused with the much simpler concept of diversification.  There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk. Asset allocation does not ensure a profit or protect against a loss. 

Learn more about asset allocation by contacting us today.

Tell a Friend

What's your risk number?

Find out today

What's your risk number?

Sign up for

Our latest events

Click Here

Additional info

  • Sitemap
  • Legal, privacy, copyright and trademark information

Contact info

Asheville

  •   One Town Square Blvd., Suite 343, Asheville, North Carolina 28803
  •   (828) 595-4045

 

Greensboro

  •   7 Corporate Center Court, Suite B Greensboro, NC 27408
  •   (336) 338-7542
  •   vpw@lpl.com

Securities and Advisory services offered through LPL Financial. A registered investment advisor. Member FINRA & SIPC.


The LPL Financial representative associated with this website may discuss and/or transact securities business only with residents of the following states: AZ, CA, FL, GA, KY, NC, NJ, OH, SC, TN, TX, VA, WI

LPL Financial Form CRS

© 2025 Valor Private Wealth LLC. All rights reserved.

Website Design For Financial Services Professionals