Unless you happen to be someone whose body measurements align perfectly with standard clothing sizes, it can be challenging to find garments that fit just right. A skilled tailor can transform off-the-rack clothing into a near-custom fit by making adjustments such as hemming or altering cuffs.

The same principle applies to investment portfolios. A standard asset allocation might be effective for the “average” investor, but customization is essential since each individual’s financial situation and goals differ.

Here are some reasons why you might want to modify your investment strategy for optimal results.

**Increased Need for Cash**
When you anticipate needing cash for short-term expenses, implementing a “bucket strategy” could be beneficial. This approach generally involves allocating one to two years’ worth of expenses to cash-equivalent investments. Additionally, setting aside five years or more of living costs in stable fixed-income securities can minimize the need to liquidate other investments at unfavorable times. Essentially, this method constructs a tailored asset allocation by prioritizing immediate needs.

**Planning for Short- or Intermediate-Term Goals**
It’s important to tailor your asset allocation not just for long-term goals but also for shorter-term aspirations. If you foresee significant expenses, such as purchasing a home, paying for education, or preparing for a wedding or vacation, ensure that part of your portfolio is invested in moderate-risk assets. Consider options like high-quality short- or intermediate-term bonds to help cover these costs.

**Heavy Investment in Company Stock**
Concentrated investments in a single stock can carry higher risks compared to a diversified mutual fund. Ideally, try to keep any single stock, including company equity awards from employment, at less than 10% of your overall portfolio. If you hold substantial stock from your job, devise a strategy for reducing your exposure without incurring excessive capital gains taxes.

**Different Ages in a Relationship**
When spouses have a significant age gap, it may be advisable for their portfolios to differ. The younger partner typically has the capacity to adopt a more aggressive investment strategy with a higher proportion of equities. Conversely, the older spouse may prefer a more conservative approach. If the investment is shared, a blended strategy based on both partners’ ages might be the way to go.

**Planning for Longevity**
If your family history suggests that you may live a long life, it would be wise to adjust your portfolio accordingly. This might allow for a greater risk tolerance and an increased allocation to equities. Some financial experts advocate for a “reverse glide path,” suggesting that one should increase equity exposure as they age instead of reducing it.

**Health Concerns Impacting Longevity**
On the other hand, if health conditions might shorten your life expectancy, it’s vital to maintain a conservative portfolio. This strategy is essential to cover potentially higher medical costs and ensure comfort during your remaining years. While you may wish to leave a financial legacy for your heirs, remember that the invaluable gift of time often outweighs monetary contributions.

**Concerns Over Asset Longevity**
If your savings are not as robust due to late starts in investing, you may worry about depleting your assets throughout your life. A critical step is reviewing your expenditures carefully. While it may be tempting to take on more risk in hopes of substantial gains, it’s typically wiser to adopt a more conservative approach—especially since a smaller portfolio has limited capacity to absorb fluctuations in the market.

**Stable Income Sources**
Owning a pension or other dependable income sources can also influence your asset allocation. Since pensions function similarly to a fixed-income investment, having a stable income stream allows you to increase your investments in equities for potential growth. Social Security benefits similarly contribute to reliable income, making it easier to diversify your portfolio toward greater equity exposure.