Implementing Asset Allocation for a Moderate Risk Profile

You are a financial advisor working with a high-net-worth client who has expressed a desire to diversify their investment portfolio. The client has a risk tolerance that falls into the moderate category and has provided a long-term financial goal of accumulating wealth for retirement in 20 years.

Given the client’s profile and objectives, you are tasked with creating an asset allocation strategy that balances both growth and capital preservation. The current market environment is characterized by rising interest rates and volatility in equity markets.

Discuss the factors you would consider when implementing an asset allocation strategy for this client. Your response should include a discussion of the asset classes that may be included, the rationale for those selections, and how you would approach rebalancing the portfolio over time to stay aligned with the client’s goals.