Asset allocation is a critical component in the development of a personal investment plan. Once your First Citizens advisor understands your personal risk tolerance, timeline and investment goals, he or she will work with you to determine an approach that helps reduce your risk by diversifying assets among different types of investments, including stocks, bonds, mutual funds and money market funds. This ongoing process takes measure of changing economic conditions and market forces as well as your growing needs.
Step 1: Discuss and Analyze.
Identify your needs, timeframe and income requirements.
Step 2: Plan and Allocate.
Determine which types of investments meet your needs.
Step 3: Implement.
Build an investment portfolio based on your asset allocation.
Step 4: Monitor and Adjust.
As conditions change, your portfolio changes accordingly.