Strategic Asset Allocation
Categories: Financial Theory, Investing, Managed Funds
This is just a fancy word for "putting money in investments that make sense based on your circumstances."
SAA refers to the practice of setting basic percentages of assets in a portfolio that match risk and volatility to the investor's needs. That is, some dude at 30 years old just entering the workplace as a vaunted young cardiologist can take a lot more risk/volatility in his life than an 80 year old retiree. The asset allocation for the 30 year old might be 90% equities, 10% debt; for the 80 year old, it might be the other way around.
The asset allocation for a crazy hill-person would be in a mayonnaise jar in the ground under the moonshine still.