A&I Wealth Management > Blog > Asset Allocation and Investment Portfolio Management

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We carefully build a portfolio of investments with the combined experience and education of our in-house investment committee plus two different research teams: Athena Invest and iMGP, (formerly known as Litman Gregory).

The academic research shows:

  1. More than 90% of the variability of an investment portfolio is due to asset allocation.
  2. The average return for the SP500 index of equities is around 10% per year.
  3. In survey after survey, individual investors underperform their own investments.

Morningstar says investors underperform by an average of one-half-percent per year. In another recent survey from DALBAR, investors underperformed their own investments by 5% or more!

How can that be?

It is hard, if not impossible, to hold on to an investment that has recently (even if temporarily) lost value. Investing is hard, even for experienced professional investors like the research teams we have put together. I can only imagine how hard it is for the average person who does not spend so much time and effort!

Learn more about Asset Allocation and Portfolio Management Services.

About Our Investment Teams

In our office, we have seven Certified Financial Planners (CFP practitioners), a handful of Masters degrees, plus two CFP adjunct professors. Each of our two research teams have an equally prestigious academic background, including several Masters degrees, Chartered Financial Analysts (CFA practitioners), CFP practitioners and at least one PhD. A&I and iMGP both started business in 1986, 37 years ago, and Athena was founded by a finance professor more than a decade ago.

Learn more about our team.

Read more

The asset allocation process at AIWM

Sources updated January, 2024.

About the author

Karl Frank, Certified Financial Planner ®, MSF, MBA, MA, is the President of A&I Financial Services LLC, a local business that specializes in wealth management, insurance planning, and retirement planning. Karl cares for business owners and the businesses that care for them. Learn More about Karl.