Prudent Asset Allocation ("PAA") is an overarching investment strategy that separates investor's assets into two channels and manages the movement from one to the other in a way that maximizes the safety of the first channel (the Preservative component) and maximizes return in the second (the Growth component). In this way investors earn as much as is feasible without putting their wellbeing at risk.
The key benefits of PAA are:
The PAA Worksheet presented below performs calculations that determine optimum allocation of assets to the Preservative component to cover expenses, planned expenditures, emergencies and other unexpected events.
Resources shown provide detailed background on PAA and explanations of the principles employed and their historical basis.
Click here for more information on DALBAR's PAA including:
Interpreting the PAA Worksheet
Prudent Asset Allocation Advisor User Guide
Enter approximate or estimated amounts in thousands for the years they are most likely to take place