Understanding Asset Allocation

You want to build a balanced and diversified investment portfolio that will yield maximum income for your retirement. Asset allocation is an investment strategy where you decide what percentage of your investment portfolio should go into cash or cash equivalents, fixed income, and equity investments. These decisions are very important because the systematic process of asset allocation plays a major part in determining whether your portfolio performs in line with your risk tolerance levels and retirement goals. The distribution of your assets within your investment portfolio can be as simple as 10% cash, 30% fixed income, 60% equities. The combined effect of this allocation might best suit your tolerance for risk, but it should be reviewed at regular intervals either on your own or with the help of an HSBC Securities Financial Advisor. From time to time your asset allocation may need to be adjusted to ensure it is consistent with your preferences and the prevailing market conditions (e.g. does the outlook for equities remain favorable for the next five years?). Keep in mind asset allocation can be even more complex, where you must decide, for example, what percentage of your equities will be devoted to large-sized companies and how much will be allotted to smaller companies. Contact an HSBC Securities Financial Advisor at 1-800-662-3343 to help you determine the most suitable asset allocation for your retirement investments.

Securities and Annuity products are provided by Registered Representatives and Insurance Agents of HSBC Securities (USA) Inc., member NYSE/FINRA/SIPC, a registered Futures Commission Merchant, a wholly-owned subsidiary of HSBC Markets (USA) Inc. and an indirectly wholly-owned subsidiary of HSBC Holdings plc. In California, HSBC Securities (USA) Inc., conducts insurance business as HSBC Securities Insurance Services. License #: OE67746. Insurance products are offered through Insurance Agents of HSBC Insurance Agency (USA) Inc., a wholly-owned subsidiary of HSBC Bank USA, N.A., and an indirectly wholly-owned subsidiary of HSBC Holdings plc. Products and services may vary by state and are not available in all states. California license #: OD36843.

Securities, Annuity and Insurance Products are:

All decisions regarding the tax implications of your investment(s) should be made in connection with your independent tax advisor.

HSBC Securities (USA) Inc. or any other member of the HSBC Group may from time to time underwrite, perform or seek to perform investment banking services for issuers or make a market or otherwise buy or sell as principal securities or other instruments, or together with the issuers directors, officers and employees may have either a long or short position in securities, commodities, currencies or other instruments or futures or options contracts convertible into securities or other instruments.