Wealth management experts use a variety of strategies to manage their client's wealth. One such strategy is asset allocation. This involves dividing an individual's portfolio among various asset classes, so that losses in one asset do not have a large effect on other assets. Another strategy is rebalancing, which involves realigning an individual's portfolio so that it matches its goals.

For investors who have significant assets, a customized asset allocation strategy is critical. Your wealth advisor will take into account your income and liquidity needs, tax implications, return expectations, and asset constraints to devise a portfolio that best matches your specific needs. While asset allocation isn't necessarily an exact science, it is still an art form that requires careful consideration and judgment.

When investing, diversification is the key to avoiding over-exposure to one type of asset. While diversifying your investments can be as simple as buying various types of stocks, diversification can also include other factors, such as investing in different industries, geographic locations, and term lengths.

There are several reasons to consider rebalancing your portfolio with a wealth management expert. These reasons depend on your current financial situation, time horizon, and investment goals. Long-term investors may need to review their allocations once a year, while those with shorter-term goals may need to review them more often.

The fiduciary duty of wealth management experts requires them to act in the best interests of their clients. This duty requires them to analyze the information they have and make recommendations that suit the client's financial needs. They may also seek advice from industry experts and keep detailed records to ensure their recommendations are appropriate.

Hiring wealth management experts to manage your wealth is a good idea if you're interested in achieving financial peace of mind. They'll offer a comprehensive approach to your finances and make smart investments. They'll also mitigate risk and rebalance your portfolio as needed.