Jerry A. Miccolis

Asset allocation is fundamental for successful investing, but if financial planning makes your palms sweat, find a reputable financial advisor and get a grasp on asset allocation terminology to help. Choose your investment strategy wisely and build a profitable portfolio with an asset allocation structure to yield top returns and minimize risk.

If you need investment help, shop around and come up with a list of potential financial advisors. Plan on meeting with two or three advisors so you can interview and evaluate them and find the right fit for your needs. Don’t hesitate to ask tough questions to gauge their investment expertise — the best financial advisors will welcome your questions and honestly share their responses with you.

Successfully building and managing your financial portfolio (a collection of financial investments chosen by you or a financial advisor) means following these steps in asset allocation’s top-down, systematic approach: Decide on your investment strategy. How conservative or aggressive should you be? For help, you may want to ask a financial advisor.

You don’t need to be a professional analyst or experienced stock-picker to have better investment results than most investors. What you do need is an understanding of asset allocation. Here are some basic terms to get started: Total return: Returns quoted in the press often focus strictly on growth (for example, “The S&P 500 is up 6 percent this year”).

Take into consideration your life goals and circumstances when deciding on your investment strategy. By doing the work now, you’ll see a clear link between your ideal strategy and your long-term financial plan in the end. Take these factors into consideration to decide on your investment strategy before determining your asset allocation: Your investment horizon and long-term financial goals: Your money needs to keep working for you far into the future, even if you’re already retired.