An asset allocation model is determined by an investor's total portfolio placement. The personal goals and risk tolerance of the investors have reflected by models. Individual asset classes can be sub-divided into sectors if the asset allocation model calls for 40% of the total portfolio to be invested in stocks. The portfolio manager may recommend different allocations within the field of stocks. The balanced portfolio is the income and growth asset allocation model. The balanced portfolio is the best option not for financial reasons, but for emotional. Real estate holdings through REITs are often a component as well. The ideal result is a mix of assets that generates cash as well as appreciates over time with smaller fluctuations in quoted principal value than the all – growth portfolio.
w. Some steps through, this balance sheet is going to be extremely important as we craft our way. At a time when the stock market begins to fall, real estate may begin generating above average returns.
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