Page 8 - 2023 Vol 13 Issue 14 Zone 1 Desoto Jewelers
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Investment and Insurance Products:  • NOT FDIC Insured • NO Bank Guarantee • MAY Lose Value
        Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC, Member SIPC, a registered broker-dealer and
        non-banka liate of Wells Fargo & Company.
        © 2023 Wells Fargo Clearing Services, LLC. CAR-0323-04417


                                                 Build your portfolio on a solid foundation
              Financial Expert Contributor
                                               Time horizon. One reason why knowing your   Of course, there are many other investments to
                                               goals is important is because it helps determine   consider, many with varying degrees of historical
                                               your time horizon (how long you have until you   risk vs. return. Just remember that you should
                                               need to tap into your investments). If you’re 28,   intend for each type of investment to play a
                                               for example, and want to retire at 68, your time   particular role, such as providing the potential for
                                               horizon is 40 years. Simple as that.  growth or income or stability, in your overall
                                               Risk tolerance. Your risk tolerance is the amount   allocation, and you need to understand the risks
                                               of volatility in your portfolio’s value you’re   involved.
                                               comfortable with. If you find you can’t sleep   Once you’ve decided on the types of investments
                                               because you’re worried about your investments   to include, you need to determine how much of
                                               — especially when there’s market volatility —   each is appropriate. If you’re looking to grow
                                               you probably need to adjust your asset allocation   your investments’ value, you’ll likely have a
               Brandon A Kuhn RICP®            to suit your risk tolerance.          larger stock allocation and a smaller one for
                 Wells Fargo Advisor           Putting the pieces together           bonds. The result would be a portfolio with more
                                                                                     potential volatility than one with a larger
        Asset allocation can be to investment planning   With those factors in hand, you can begin to piece   proportion of bonds. You should ask yourself if
        what the foundation is to a house or the chassis is   your asset allocation together. The primary   that’s a trade-off you’re comfortable with.
        to a car. It’s what everything else is built upon.   building blocks, at least to begin with, are likely    Get help if you need it
        And just as important as constructing a house on a   to include:
        firm foundation, having the right asset allocation   Stocks. Historically, stocks have offered attractive   Although asset allocation is a relatively simple
        can be vital to helping you work toward your   returns, but along with those returns, there’s also   concept, you can see it has lots of “moving parts.”
        financial goals.                       been periods of volatility. If you’re young, you   That’s one reason why many investors opt to
        Although the name may sound intimidating, asset   generally have a long time horizon — especially   work with a professional financial advisor. If you
                                                                                     decide to seek help, look for an advisor who will
        allocation is just a technical term for a rather   when it comes to retirement. That may allow you   first get to know you and then help create an
        simple concept. It’s merely how your portfolio is   to have a larger allocation to stocks because you   investment plan that’s built around (what else?) an
        divided up among different types of investments,   have longer to ride out any short-term market   appropriate asset allocation.
        such as stocks, bonds, and what are called “cash   volatility that occurs.
        alternatives.”                         Bonds. One reason investors like bonds in a   Asset allocation cannot eliminate the risk of
        How it works                           portfolio is because their prices have historically   fluctuating prices and uncertain returns.
                                               been relatively stable. By owning bonds, an   Wells Fargo Wealth & Investment Management (WIM) is a division within
        Using asset allocation to build a portfolio   investor’s aim may be to help manage his or her   Wells Fargo & Company. WIM provides financial products and services
        designed to help you reach your long-term goals   portfolio’s overall value when there’s volatility in   through various bank and brokerage affiliates of Wells Fargo & Company.
                                                                                     Wells Fargo & Company and its affiliates do not provide tax or legal
        requires taking three primary factors into   the stock market. The larger the proportion of   advice.
        consideration:
                                               bonds, the more steady the portfolio’s overall   Investment and Insurance Products are:
        Goals. These are simply what you’re investing the  value should remain. Keep in mind, however, that   • Not Insured by the FDIC or Any Federal
        achieve. For many of us, a major goal is to enjoy   bonds’ returns have been significantly less than   Government Agency
        a financially secure retirement. If you have   stocks.                          • Not a Deposit or Other Obligation of, or
        younger children or grandchildren, helping them   Cash alternatives. These are relatively   Guaranteed by, the Bank or Any Bank Affiliate
        afford higher education without building a   lower-risk, lower-return investments. On the   • Subject to Investment Risks, Including Possible
                                                                                        Loss of the Principal Amount Invested
        mountain of debt is likely another goal. Or maybe   upside, they can be easily be converted into cash
        you’d also like to make a luxury purchase — such   when it’s needed. On the downside, their returns   Wells Fargo Advisors is a trade name used by Wells Fargo Clearing
                                                                                     Services, LLC, Member SIPC, a registered broker-dealer and non-bank
        as buying a vacation home or dream car or taking   may not even keep up with inflation.  affiliate of Wells Fargo & Company. This advertisement was written by
        an exotic vacation — down the road.                                          Wells Fargo Advisors and provided to you by Brandon A. Kuhn, Branch
                                                                                     Manager. ©2017-2023 Wells Fargo Clearing Services, LLC. All rights
                                                                                     reserved. CAR: 0523-01025
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