LEAWOOD, Kan., April 5, 2012 /PRNewswire/ -- This Easter, as kids are dreaming of candy eggs and chocolate rabbits, parents should remember the old adage: Don't put all your eggs in one basket. While this is good advice for eggs, it rings especially true for personal finances.
"Diversifying assets plays an important role in building long-term financial security," said Kelli Glynn, Senior Vice President, M&I Wealth Management, a part of BMO Financial Group. "Although no investment policy can provide certainty of positive returns, diversification of assets can help minimize volatility over short-term market cycles."
Glynn is offering some guidance on asset classes and allocation to aid consumers in their efforts to gain financial stability over the long haul. The key to successful asset allocation is to identify your individual ideal allocation based on investment objectives which include age, goals, tolerance for risk, current financial situation and retirement timeframe.
A diversified investment portfolio includes asset allocations across several asset classes which include stocks, bonds and cash. Asset classes act differently under different economic conditions, which is why consumers should be aware of how their investments are allocated. Particular attention should be paid to how many years a person has until retirement. Many investors use the time until retirement as a gauge for risk.
Of course, a strategy that keeps a person up at night may help one determine that the strategy is not worth the risk. Consumers should invest at their comfort level and ensure that their portfolio is diversified across all asset classes.
A portfolio's value will change as market conditions change; therefore it is important to consult with a Financial Advisor to review your portfolio and asset allocation at least annually. Reevaluating your portfolio will ensure that your investments are properly allocated among all asset classes.
"Managing assets can be a daunting task, but a little guidance and education will go a long way to ensuring your investment health," added Glynn.
About M&I Wealth Management, a part of BMO Financial Group
M&I Wealth Management is a trade name used by various subsidiary financial service providers of BMO Financial Corp. M&I Wealth Management offers products and services through various affiliates of BMO Financial Corp., including Marshall & Ilsley Trust Company N.A., M&I Investment Management Corp. and M&I Financial Advisors, Inc. (member FINRA/SIPC). M&I Wealth Management, A part of BMO Financial Group, is a leading provider of trust, investment management and private banking services to corporations, institutions and affluent individuals. For high net worth individuals and families, M&I Wealth Management offers a comprehensive range of customized wealth management services that include financial planning, investment management and advisory services, trust and estate services, and private banking. In 2011, M&I Wealth Management became a part of BMO Financial Group, one of the largest diversified financial services organizations in North America with total assets of $477 billion as of October 31, 2011, and more than 47,000 employees.
M&I Financial Advisors
M&I Financial Advisors, Inc. ("MIFA") is a Member of FINRA/SIPC and an SEC- registered investment adviser (maintaining its principal offices at 111 E. Kilbourn Ave., Milwaukee, WI 53202) offering various brokerage, investment and insurance products. MIFA also offers products and services through various affiliates of BMO Financial Corp, including Marshall & Ilsley Trust Company N.A. and M&I Investment Management Corp. Insurance coverage is underwritten by a number of insurers. Insurance products are the obligation of the insurance company.
Investment products and insurance products offered: ARE NOT A DEPOSIT – NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY – NOT GUARANTEED BY ANY BANK – MAY LOSE VALUE.
United States Department of Treasury Regulation Circular 230 requires that we notify you that, with respect to any statements regarding tax matters made herein, including any attachments, (1) nothing herein was intended or written to be used, and cannot be used by you, to avoid tax penalties; and (2) nothing contained herein was intended or written to be used, and cannot be used, or referred to in any marketing or promotional materials. Further, to the extent any tax statement or tax advice is made herein, BMO Harris Bank N.A. and its affiliates do not and will not impose any limitation on disclosure of the tax treatment or tax structure of any transactions to which such tax statement or tax advice relates. BMO Harris Bank N.A. and its affiliates do not provide legal advice to clients. You should review your particular circumstances with your independent legal and tax advisors.
SOURCE M&I Wealth Management, a part of BMO Financial Group