Investment Allocation Review & Recommendations
Aligning Investment Strategy With Your Financial Plan and Life Stage
As part of our fee-based financial planning services, Greenbush Financial Group provides a comprehensive review of clients’ existing investment accounts along with clear, thoughtful investment allocation recommendations. This service is valuable even for clients who ultimately plan to self-direct their investments.
Ensuring that each investment account is properly allocated is a critical component of an effective financial plan. Investment allocation is not about chasing returns—it is about aligning risk, time horizon, and personal comfort with market volatility to support long-term financial goals.
Why Investment Allocation Matters
Investment allocation influences:
How portfolios perform in different market environments
How quickly accounts recover after market downturns
The sustainability of retirement income
Behavioral decisions during periods of volatility
An improperly allocated portfolio can create unnecessary risk—or limit growth—both of which can undermine an otherwise sound financial plan.
Our Bucket Strategy Approach
We commonly use a bucket strategy to align investment allocations with the timing of future cash-flow needs. Not all dollars have the same purpose, so they should not be invested the same way.
Growth (Aggressive) Bucket
Long-term time horizon
Assets not needed for many years
Focus on growth and inflation protection
Higher tolerance for market volatility
Balanced Bucket
Medium-term objectives
Combination of growth and stability
Moderate risk profile
Designed to smooth volatility while still growing assets
Income (Conservative) Bucket
Short-term needs
Designed to support upcoming distributions
Focus on stability and liquidity
Reduced exposure to market swings
This structure allows different parts of a portfolio to serve different roles—rather than relying on a single allocation for every goal.
The Transition From Accumulation to Distribution
One of the most significant shifts in investment strategy occurs when individuals move from the working years into retirement.
During accumulation years:
Contributions are ongoing
Market downturns can be weathered without selling assets
Time works in the investor’s favor
During retirement and distribution years:
Withdrawals may be required to support income
Assets may need to be sold during market declines
Recoveries take longer if withdrawals occur at depressed values
This phenomenon—often referred to as sequence-of-returns risk—is why investment allocations typically need to become more thoughtful and balanced as retirement approaches.
The Risk of Being Too Conservative
While reducing risk in retirement is important, becoming too conservative can create its own challenges.
For example:
A person retiring at age 60 with a life expectancy of 90 needs assets to last 30 years
Portfolios invested solely in CDs, money markets, or bonds may struggle to keep pace with inflation
Purchasing power may erode over time
Inflation risk can be just as damaging as market risk if not properly managed.
Personal Risk Tolerance Matters
Risk tolerance is a deeply personal component of investment planning.
Some investors:
Are comfortable with market fluctuations
Understand volatility as part of long-term investing
Others:
Are more conservative by nature
Experience stress during downturns
May be tempted to sell during market declines
If a conservative investor is placed into an allocation that is too aggressive:
Emotional decision-making increases
Selling during downturns becomes more likely
Long-term investment outcomes may suffer
Investment allocations should reflect both financial capacity for risk and emotional comfort with risk.
Our Role in Investment Allocation Reviews
At Greenbush Financial Group, we:
Review existing investment accounts across all platforms
Evaluate allocations relative to time horizon and cash-flow needs
Identify misalignment with retirement and planning goals
Support both managed and self-directed investors
Integrate investment strategy with tax and retirement planning
Our goal is to help clients feel confident—not reactive—about how their money is invested.
Our Investment Allocation Articles
“We have worked with this firm for 4 years. They have assisted us with pre and post retirement planning. The Greenbush team is reliable and responsive to all of our questions. They are proactive in the market conditions and have grown our portfolio. I highly recommend this firm for investments and tax planning. ⭐⭐⭐⭐⭐”
This testimonial provided for Greenbush Financial Group, LLC on Google Review was made by a client, and it was a non-paid review. This client was solicited by Greenbush Financial Group, LLC to provide the testimonial.
“Mike was very knowledgeable. I am not a Client, I called to speak with someone who could advice me on how to handle my situation and investments .... Mike is the man!! I strongly urge you to call them if you have any questions about your wealth investments and what you will get is Professionalism, Knowledgeable and friendly advice. Thank you Mike. ⭐⭐⭐⭐⭐”
This endorsement provided for Greenbush Financial Group, LLC on Google Review was made by a non-client, and it was a non-paid review. This non-client was solicited by Greenbush Financial Group, LLC to provide the endorsement.
“liked the point about Roth IRAs possibly staying aggressive since you may never touch them - smart nuance.”
This endorsement provided for Greenbush Financial Group, LLC on YouTube was a non-solicited and non-paid comment by a non-client.
“I’m new to the ETF world so this was very helpful in understanding the differences between them and mutual funds. You explained this in an easy-to-understand manner!”
This endorsement provided for Greenbush Financial Group, LLC on YouTube was a non-solicited and non-paid comment by a non-client.
Frequently Asked Questions About Investment Allocation
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What is investment allocation?Investment allocation refers to how assets are divided among different investment types to balance risk and return.
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Why is investment allocation important in a financial plan?Proper allocation helps manage risk, support income needs, and improve long-term sustainability of a plan.
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What is a bucket strategy?A bucket strategy separates assets by time horizon and purpose—short-term income, mid-term balance, and long-term growth.
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How should investments change when entering retirement?Allocations often shift to reduce sequence-of-returns risk while still maintaining enough growth to combat inflation.
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Is there a risk to being too conservative?Yes. Being too conservative can expose retirees to inflation risk and reduce long-term purchasing power.
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How does risk tolerance affect investment decisions?Risk tolerance determines how much volatility an investor can emotionally and financially withstand without making poor decisions.
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Do I need investment recommendations if I self-direct my accounts?Professional review and recommendations can help even if you execute trades yourself.
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How often should investment allocations be reviewed?Allocations should be reviewed regularly and whenever life events, retirement timing, or market conditions change.
Contact Us . . . .
All of our services start with a complimentary consult. No high pressure sales tactics. We are financial planners, not salesmen.
About Our Firm: Greenbush Financial Group is an independent registered investment advisory firm based in Albany, New York, that provides four main services to clients: fee-based financial planning services, investment management, employer-sponsored retirement plans, and retirement planning services. The firm serves clients locally in the Albany region and virtually across the United States.
