Asset Allocation in a Changing Economic Environment

Wealth Management

By Jeffery Acheson

We here at Schneider Downs Wealth Management Advisors, LP (SDWMA) have long held that the recipe (asset allocation) is as or more important than the ingredients (utilized funds). As any great chef will tell you, a bag of the best ingredients in the world doesn’t ensure a tasty dish without the right recipe that has most likely been developed over time.

Part of creating a great investment recipe is strategic, using history and past trial and error as your guide. Another equally important part of the process is tactical, involving an educated and informed interpretation of potential future events or circumstances that may come into play. Tactical decisions can be focused on downside risk management or capturing upside rate-of-return opportunities.

As we head into 2010, our tactical crystal ball here at SDWMA has us paying attention to the impact on our recipes of the potential of rising interest rates, inflation and income tax brackets. Another critically important prospective issue we are analyzing is the possibility that we could be dealing with a slow-growing domestic economy for some extended period of time, with the opportunities for higher returns coming from companies capitalizing on the faster-growing economies in the developing or emerging international markets.

Make it your New Year’s resolution to review with your financial advisor of choice, or one of ours here at SDWMA, your asset allocation recipe to make sure it is fundamentally sound, with all of the ingredients needed to make 2010 and beyond a prosperous period of time for your nest egg.

Schneider Downs provides accounting, tax and business advisory services through innovative thought leaders who deliver the expertise to meet the individual needs of each client. Our offices are located in Pittsburgh, PA, and Columbus, OH.

This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax-related matter.

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Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

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