Transcript Slide 1

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Step 1
Selecting your
Benchmark Asset
Allocation
What is Asset Allocation?
Asset allocation is the
process of combining
asset classes such as
stocks, bonds, and cash
in a portfolio in order
to meet your goals.
Bonds
Stocks
Cash
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3/1/2009 • Source: Created by Raymond James using Ibbotson Presentation Materials ©2009 Morningstar, Inc.
All rights reserved. Used with permission.
Long-Term Portfolio Performance
1926 – 2008
70%
upside most
capture
/ 25%
exposure
to stocks
Captures
of the
return
of Portfolio
1
with only 50% exposure to stocks
Compound Annual Return
$10,000
1,000
Portfolio 1 (100% Stocks)
Portfolio 2 (75% Stocks, 25% Bonds)
Portfolio 3 (50% Stocks, 50% Bonds)
Portfolio 4 (25% Stocks, 75% Bonds)
Portfolio 5 (100% Bonds)
9.6%
8.9
8.0
6.8
5.4
$2,049
$1,219
$597
$241
$80
100
10
1
0.10
1926
1936
1946
1956
1966
1976
1986
1996
2006
Past performance is no guarantee of future results. • An investment cannot be made directly in an index. • Hypothetical value
of $1 invested at the beginning of 1926. Assumes reinvestment of income and no transaction costs or taxes. This is for illustrative purposes only and not indicative of any investment. • Source:
Created by Raymond James using Ibbotson Presentation Materials
©2009 Morningstar, Inc. All rights reserved. Used with permission.
20-Year Portfolio Performance
1989 – 2008
95% upside capture w/ 25%
50% exposure to stocks
90%
Compound Annual Return
$10
1 (100% Stocks)
8.4%
2 (75% Stocks, 25% Bonds) 8.4
3 (50% Stocks, 50% Bonds) 8.3
4 (25% Stocks, 75% Bonds) 8.0
5 (100% Bonds)
7.5
5
$5.05
$5.04
$4.91
$4.63
$4.24
So why do you have so much money
in stocks?
Are you taking the appropriate
amount of risk in an effort to reach
your goals?
1
1989
1994
1999
2004
Past performance is no guarantee of future results. • An investment cannot be made directly in an index. • Hypothetical value
of $1 invested at the beginning of 1989. Assumes reinvestment of income and no transaction costs or taxes. This is for illustrative purposes only and not indicative of any investment. • Source:
Created by Raymond James using Ibbotson Presentation Materials ©2009 Morningstar, Inc. All rights reserved. Used with permission.
Conclusions
Asset Allocation
• Given the historical information, the only two
reasons for owning stocks as a major portion
of your portfolio are because…
1. You have to in order to attempt to reach
your goals…or
2. You want to speculate with the goal of
achieving higher returns.
TM
We can help find the right
Benchmark Asset Allocation
for you.
TM
Information presented is believed to be factual and up-to-date and was obtained from sources known to be
reliable. It should not be regarded as a complete analysis of the subjects discussed. All expressions of
opinion reflect the judgment of the author as of the date of presentation and are subject to change.
•The S&P 500 Index is an index, with dividends reinvested, of 500 issues representative of leading companies in the U.S. large cap
securities market representative sample of leading companies in leading industries). Russell investments (02/09)
• None of the graphs or charts contained in this presentation represents the performance achieved by any client of Level Paths Investment
Advisers. They are designed to illustrate Level Paths’ tactical asset allocation strategy. All investment strategies have the potential for
profit or loss. Changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your
portfolio. Past performance is not a guarantee of future success.
• Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be
suitable or profitable for a client's investment portfolio.
• Historical performance results for investment indexes and/or categories, generally do not reflect the deduction of transaction and/or
custodial charges or the deduction of an investment-management fee, the incurrence of which would have the effect of decreasing
historical performance results.
• Economic factors, market conditions, and investment strategies will affect the performance of any portfolio and there are no assurances
that it will match or outperform any particular benchmark.
• Information presented does not involve the rendering of personalized investment advice, but is limited to the dissemination of general
information on products and services. This information should not be construed as an offer to buy or sell, or a solicitation of any offer to
buy or sell the securities mentioned herein.
• Level Paths LLC is registered as an investment adviser with the state of Missouri. The firm only transacts business in states where it is
properly registered, or is excluded or exempted from registration requirements.
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