How We Build Investment Portfolios | Asset Allocation & Risk Explained Where should you invest your money? What’s the best portfolio for long term success? In this video, Chris Lott, Managing Partner at Smith Anglin Financial, explains how professional investment portfolios are constructed—with a focus on asset allocation, risk tolerance, diversification, and time horizon. Rather than chasing hot stocks or timing the market, this approach emphasizes disciplined portfolio design based on proven investment principles. Chris walks through how understanding a client’s risk tolerance and retirement timeline helps determine the appropriate mix of assets, including equities, bonds, international investments, and alternatives. He also explains why asset allocation is one of the most important drivers of long term investment performance, supported by industry research, and how diversification helps manage risk and volatility over time.
In this video, you’ll learn:
• Why “hot stock” investing can be risky
• How risk tolerance and time horizon shape portfolio design
• What asset allocation is and why it matters
• How diversification helps manage volatility
• How tax efficient investing fits into portfolio construction
At Smith Anglin Financial, portfolio management is part of a comprehensive wealth management process designed to support clients through retirement and beyond. If you’d like to learn more about our investment approach, we’re happy to continue the conversation. Sources BlackRock, Asset Allocation: The Most Important Decision, 2023.
Smith Anglin Financial is a group comprised of investment professionals registered with Hightower Advisors, LLC, an SEC registered investment adviser. Some investment professionals may also be registered with Hightower Securities, LLC (member FINRA and SIPC). Advisory services are offered through Hightower Advisors, LLC. Securities are offered through Hightower Securities, LLC.
This is not an offer to buy or sell securities, nor should anything contained herein be construed as a recommendation or advice of any kind. Consult with an appropriately credentialed professional before making any financial, investment, tax or legal decision. No investment process is free of risk, and there is no guarantee that any investment process or investment opportunities will be profitable or suitable for all investors. Past performance is neither indicative nor a guarantee of future results. You cannot invest directly in an index.
These materials were created for informational purposes only; the opinions and positions stated are those of the author(s) and are not necessarily the official opinion or position of Hightower Advisors, LLC or its affiliates (“Hightower”). Any examples used are for illustrative purposes only and based on generic assumptions. All data or other information referenced is from sources believed to be reliable but not independently verified. Information provided is as of the date referenced and is subject to change without notice. Hightower assumes no liability for any action made or taken in reliance on or relating in any way to this information. Hightower makes no representations or warranties, express or implied, as to the accuracy or completeness of the information, for statements or errors or omissions, or results obtained from the use of this information. References to any person, organization, or the inclusion of external hyperlinks does not constitute endorsement (or guarantee of accuracy or safety) by Hightower of any such person, organization or linked website or the information, products or services contained therein.
Click here for definitions of and disclosures specific to commonly used terms.
14755 Preston Road, Suite 700
Dallas, TX 75254
972.267.1244 local
800.301.8486 toll free
Check the background of this practice on FINRA's BrokerCheck.
Founded in 1967, Smith Anglin is a wealth management practice based in Dallas, Texas. As trusted financial stewards, we provide an elevated standard of care and manage over $1.9 billion in client assets* for a select group of pilots, families, individuals, and business owners in 48 states and abroad. With deep roots in accounting, tax planning and aviation retirement readiness, our mission is to conscientiously help secure the financial well-being of our clients over the course of their lives, working diligently to help them achieve their goals, dreams and financial security.
*Data current as of 6/16/2025
Form Client Relationship Summary ("Form CRS") is a brief summary of the brokerage and advisor services we offer.
HTA Client Relationship Summary
HTS Client Relationship Summary
Hightower Advisors, LLC is an SEC registered investment adviser. Registration as an investment adviser does not imply a certain level of skill or training. Securities offered through Hightower Securities, LLC, Member FINRA/SIPC. brokercheck.finra.org