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Investment Allocation Plan Bob and Sally Smith

Prepared by: Gary Barker, Financial Advisor | September 11, 2018. Investment Allocation Plan Bob and Sally Smith. Major Asset Classes. Stocks Bonds Cash equivalents. What is a stock?. Represents ownership in a company Intent: Sell price > purchase price Appeals to the long-term investor

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Investment Allocation Plan Bob and Sally Smith

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  1. Prepared by: Gary Barker, Financial Advisor | September 11, 2018 Investment Allocation PlanBob and Sally Smith

  2. Major Asset Classes • Stocks • Bonds • Cash equivalents

  3. What is a stock? • Represents ownership in a company • Intent: Sell price > purchase price • Appeals to the long-term investor • Volatile • No guarantees

  4. What is a bond? • Long-term loan • Ex: Corporation- or government-issued • Investors receive principal and interest • Appeals to investor seeking fixed income • Performance affected by current interest rates • Quality/risk based upon issuer’s ability to repay loan

  5. What is a cash investment? • Short-term loan • Ex: Credit union savings account, certificates of deposit, government treasury bills, money market accounts • Investors receive principal and interest • Appeals to investor seeking maximum protection • Very low risk • Very low profit

  6. Asset Allocation • Amount divided among the three asset classes • Based upon: • Risk tolerance • Investment goals • Current time horizon • Allocate more stocks in early years of your career • Increase allocation to bonds as you near retirement age • Add cash asset class when very close to retirement and/or in retirement Diversification and asset allocation strategies do not assure profit or protect against loss in a generally declining market.

  7. Diversification • How assets are divided WITHIN the three asset classes • Decreases risk in overall portfolio • Reduces fluctuations in portfolio returns Diversification and asset allocation strategies do not assure profit or protect against loss in a generally declining market.

  8. Three Step Process • Asset allocation • Time horizon • Risk tolerance • Investment goals • Diversification • Decrease risk/reduce fluctuations • Monitor and manage • Adjust as you near anticipated retirement age • Periodically rebalance

  9. Data

  10. Assumptions

  11. Recommendations

  12. Thank you for this opportunity to help you achieve your financial goals! Barker Investment Services 805 North Travis Street, Suite 100 Sherman, Texas 75090-5057 903-893-5669 Gary@InvestBIS.net InvestBIS.net Investors should carefully consider the investment objectives, risks, fees and expenses before investing. For this and other important information please obtain the investment company fund prospectus and disclosure documents from your Rep/Advisor. Read this information carefully before investing. Securities offered through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC. Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Cambridge and Barker Investment Services are not affiliated. V.CIR.0918-3739

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