Most people are used to the concept of budgets. Budgets for the dollars you spend, the assets you acquire. What’s unfortunate is when you’re caught off-guard because your budget was impacted by an unforeseen expense. Similarly, investments often get into trouble because of an unforeseen risk. When you look at the market today, being “diversified” generally means allocating to a wide range of assets. At Foundations, we dive deeper. We believe in approaching asset allocation with a risk budget and dig into how much risk that asset class is vulnerable to. We make sure our diversification is in risk, as opposed to asset class. Our goal, ultimately, is to maximize return and limit any unforeseen surprises.