Understanding Strategic Asset Allocation for a Client Portfolio

Imagine you are a financial advisor working with a client, Jane, who has recently inherited a substantial amount of money. Jane is interested in creating a long-term investment portfolio to ensure her financial independence and to support her retirement goals. She has a moderate risk tolerance and a time horizon of over 20 years.

Jane is particularly interested in discussing the concept of Strategic Asset Allocation (SAA) and its importance in aligning her investment strategy with her long-term financial goals. Define Strategic Asset Allocation and explain its role in the investment management process. Additionally, discuss how you would approach creating an SAA plan for Jane, considering her risk tolerance and time horizon.