Topic 4 – Asset Allocation VS Income Allocation

Please watch this video before proceeding to the next topic and marking as “Completed”

So we’ve reached the final module, module four, and we’re drawing to a close. I’d like to review some of the differences between asset allocation theories and income allocation theories. Asset allocation is a theory, and that particular theory requires that you invest all of your money and get a market return, that subject to sequence returns risk, and also subject to longevity risk because we have none of our money guaranteed to provide lifetime income payments. Income allocation, on the other hand requires only a percentage of your money. Remember we can still invest the growth portion of your money for future needs. For those trips that you want to take around the world in your Gogo years. For that grandchild’s education that you might want to invest in. Or perhaps charities or foundations that you’d like to help as part of your legacy plan.

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