The same way that a role model offers a standard for comparison and imitation, a model portfolio is similar in many respects. It's an investment strategy to emulate based on your risk tolerance, time horizon, and objectives. Once we've determined your risk tolerance and you have an understanding of the different asset classes, we can begin to look at some model portfolios. The following five hypothetical Maxwell Portfolios represent a possible asset allocation for your specific investor profile. Because models are general, we'll look at specific investments when designing your custom strategy. While model portfolios help you achieve your personal investment objectives using asset allocation strategies, it is also important to note that asset allocation as part of your investment strategy neither assures nor guarantees better performance and cannot protect against loss in a declining market. An asset class is a broad mix of investments that have similar characteristics such as risk tolerance or market capitalization. Asset allocation is just one part of developing a sound financial plan. Consult with a Portfolio Financial advisor to help you determine the most appropriate strategy for you.