Here is a shocking fact: Asset allocation, the idea of spreading one’s money into different buckets or asset classes, accounts for 90% of a portfolio’s return over time. This leaves a paltry 10% of performance tied to security selection and market timing.
Think of how radical this fact actually is. When you turn on CNBC or tune [...]
Category Archives: Benefits of Asset Allocation
Where Portfolio Returns Really Come From
Wednesday, August 11, 2010
The big drop – did you yawn or did you freak?
Saturday, May 15, 2010
On May 6th of last week, the markets shocked the world with a never-seen-before event – a 1000-point drop in a mere sixteen short minutes. During those brief moments and the hours following, financial programs on TV and radio featured pundits whose heads were spinning while seeking to comprehend how 10% of the market’s value [...]
Retirement Planning Is Essential to Retire Rich
Friday, April 30, 2010
Retirement planning is a subject full of irony: the younger you are when you start investing for it, the more likely it is that you’ll retire with plenty. But when we’re young, we tend to care the least about retirement. Most people under 40 years old don’t even think much about it. Life has more [...]
Behind Closed Doors – The Untold Story About Diversification
Monday, March 8, 2010
Have you ever been a part of one of those trusted conversations where you become privy to information that is so powerful it would disrupt the status quo?
Think of the conversations that occur behind closed doors at the White House, corporate boardrooms or U.S. Central Command. We all understand that there are elements of those [...]
Smart Retirement Investing: Using Asset Allocation in Retirement Plans
Sunday, February 28, 2010
If you don’t already have your television set to record Jean Chatzky’s Money 911 segment on NBC’s TODAY Show, you might want to as she continues to speak about timely financial topics that are presented in a very straightforward manner, as recently done in an article about retirement plans and investing options.
For years, my husband and [...]
Asset Allocation vs. Tactical Allocation – Know the Difference
Sunday, January 24, 2010
Asset Allocation is being mistaken form tactical allocation. “It’s the financial fantasy for a post-crash world: Wouldn’t life be grand if you could own one mutual fund that invested in domestic and foreign stocks, bonds, cash, real estate, commodities and currencies, freely shifting investments among categories to take advantage of opportunities, and avoid meltdowns?”
Well, of [...]
