By: Neerja Caprihan
For those of us who believe in new year resolutions, hope it’s been a productive January so far. If you have made it past Quitter’s Day1 without, well quitting, then that resolution’s future looks promising indeed! Like most enterprises in life, if one understands the spirit behind the resolution, half the work of keeping it is done. Keep going!
Resolutions or not, the flowchart of most plans begins the same way – by defining the priorities or targets. The path forward is then straightforward and intuitive, as simple as ABCD.
A. Allocate. Set aside resources, be it time, place, people, finances, or simply mental space
B. Balance. Recalibrate as you go, to maintain focus and equilibrium
C Customize. Modify for your particular change of need or circumstances
D. Diversify. Don’t put all eggs in one basket
An Investment Strategy for a Resolution
Let’s apply the above strategy. Take for instance a resolution of fitness-improvement.
- You start by keeping aside a time of the day dedicated to it regularly. That’s allocation.
- It does not serve well to aim only for strength training or cardio, the regimen should include flexibility, stretching and various other exercises. That’s balance.
- Depending on one’s bodily requirements and fitness goals, the selection, duration and intensity of exercises can be periodically adjusted. That’s customization.
- Only physical training routines will not result in improved fitness in a sustainable way. One has to invest equally in healthy dietary habits, active lifestyle, and other mindful choices. That’s diversification.
In effect, you have just applied the basics of Asset Allocation investment strategy to one of your new year resolutions. Why not add this strategy to your financial journey next?
And that’s also why we offer an Asset Allocation portfolio2 – a portfolio that is dialed up or down for risk, offering good diversification across different asset classes.
Allocate, Balance, Customize, Diversify – with IA
Our portfolio allocates capital to an equity component, a bond component and an inflation-hedging component. IA balances different asset classes in the portfolio to provide income, growth and stability during different economic conditions while taking into account the various asset classes’ historical performance.
If you have an opinion that you want taken into consideration, there is the ability to customize. Customizing means you can change the target allocations of the ETF components that make up the Asset Allocation portfolio. The overall composition delivers good diversification, which leads to risk reduction and return stability. All this and more, at a low asset-based management fee of 0.20% with no trading commissions, entry or exit fees.
You can also specify the level of ESG focus for the portfolio. Additionally a tax-loss harvesting facility is available to all clients who are invested in our taxable custom Asset Allocation portfolio. Read the white paper on Asset Allocation and check out the FAQs for more details.
It is said that the first step is the hardest. Not if you click signup and just do it already! If you had prudent financial planning on your list of new year resolutions, that’s one thing off your list even before the first month of 2026 comes to an end!
PHOTO CREDIT: https://www.shutterstock.com/g/oland
VIA SHUTTERSTOCK
FOOTNOTES AND SOURCES
1https://www.heraldtribune.com/story/news/2026/01/08/quitters-day-new-years-resolutions-january-most-popular/88080178007/
2 This particular Asset Allocation offering is currently available only to residents of the United States. Interactive Advisors does not guarantee that any particular Asset Allocation portfolio will meet a given client’s investment objective or provide a client with a specified level of income.
DISCLOSURES:
Nothing on this page should be construed as a solicitation or offer or recommendation to buy or sell any security or as an attempt to provide any investment advice. Investment advice is only provided to investors who become clients pursuant to an investment management agreement. Covestor Ltd is an investment advisor registered with the Securities and Exchange Commission, doing business as Interactive Advisors (“Interactive Advisors”).
Diversification of assets (which Interactive Advisors uses to reduce the risk of investment in this portfolio) does not ensure a profit or protect against investment loss. All investments, including those in this portfolio, involve the risk of loss, including possible loss of the money invested and a reduction in earnings. Market fluctuations and other factors may cause decreases in the value of client accounts invested in this portfolio. Interactive Advisors does not guarantee that any particular Asset Allocation portfolio will meet a given client’s investment objective or provide a client with a specified level of income. Past performance is no guarantee of future returns. This portfolio mainly invests in ETFs and stocks and may not be suitable for all investors. Clients may lose all or part of their investments in this portfolio.
Detailed information on the asset class risks, conflicts of interest, applicable brokerage commissions, fractional shares, and limitations on investments and divestments associated with this portfolio (along with Interactive Advisors full disclosures) is provided on the Forms and Agreements page. Additional information on the performance, composition and construction process for this portfolio may be found on the Asset Allocation portfolio page.
Interactive Advisors Asset Allocation portfolio is made up of whole and/or fractional holdings of ETFs and in certain cases, individual stocks. They are not ETFs or Mutual Funds. Clients choosing to invest in this portfolio directly own the individual stocks and/or ETF shares making up the portfolio.
Interactive Advisors manages this portfolio by trading its own funds and replicating this trading in the accounts of investing clients. Clients may restrict any of the stocks or ETFs traded in their account but should note that any restrictions they place on their investments could affect the performance of their account leading it to perform differently, i.e., worse or better, than Interactive Advisors account managing the portfolio or other client accounts invested in the same portfolio.
