This is where an investment selection process called asset allocation can help. Based on your current assets, spending needs, sources of income and long term objectives, asset allocation seeks to maximize your potential return for your given level of risk tolerance. As the potential return of an investment increases, so does the degree of risk involved. Asset allocation gives you a logical approach to investing. The theory is that your overall portfolio results are impacted by the away you diversify among asset classes rather than by the individual investments you choose.
Many people view life insurance as death benefit protection.
But with the different types of policies available today, life insurance can help you meet other goals, such as saving for retirement and education or paying estate taxes. Most older North Carolinians worry that they will outlive their financial resources and become dependent upon public assistance during their sunset years. They worry that their health will decline and leave them helpless and in need of custodial care. This worry is not unfounded. As we get older, and because we are living longer, the likelihood of needing help with the activities of our daily lives increases with every passing year.