Save, Invest, Build Wealth

Asset Allocation

Why is Asset Allocation Important? The Most Crucial Investment Concept

Why is Asset Allocation Important? The Most Crucial Investment Concept

By in Asset Allocation, Bond, Investing, Mutual Funds, Stocks | 15 comments

MBA Series – What Makes Asset Allocation So Important? “Don’t put all of your eggs in one basket.” The beginning of the year is portfolio rebalancing time for investors. I write a lot about investing as it is an achievable path to long-term wealth. If you don’t know what asset allocation is or much about investing at all, then this article is for you. Modern Portfolio Theory is the science that drives most of the writing about investing today. As I put the finishing touches on the university Investments class I’m teaching, I’m going to share some of the basics...

Read More
How to Build an Investment Asset Management Strategy

How to Build an Investment Asset Management Strategy

By in Advanced Investing, Asset Allocation, Bond, Investing, Mutual Funds, Stocks | 11 comments

How to Outperform 70% of Active Fund Managers with a Smart Investment Asset Management Strategy This multi-part series will walk you through, step-by-step, how to create an investment asset management strategy that will maximize your returns and minimize risk. You’ll learn about various asset classes, how to choose the right mix for your risk tolerance, and how to rebalance annually. At the end of this series, you’ll have a set it and forget it approach to investing. Welcome to Part 1: How to Build an Investment Asset Management Strategy Part 2; 8 Steps to Creating a Diversified Asset Classes Portfolio Part...

Read More
Investment Diversification Strategy – How to Figure Out My Risk Tolerance

Investment Diversification Strategy – How to Figure Out My Risk Tolerance

By in Advanced Investing, Asset Allocation, Bond, Investing, Money Management, Stocks | 9 comments

Part 3: What is Risk Tolerance and How to Figure Out my Asset Classes Allocation Today’s article of this multi-part series answers the question, “How to figure out my risk tolerance”.  Part 1: In How to Build an Investment Management Strategy you learned the important research behind investing with a diversified asset classes portfolio. Part 2: Outlined the 8 Steps to Creating a Diversified Asset Classes Portfolio. Today you will learn how to figure out your risk tolerance and begin designing your own asset classes diversification strategy. “There are two kinds of investors, be they large or small: those who don’t...

Read More
Rebalance Your Asset Allocation Guide

Rebalance Your Asset Allocation Guide

By in Advanced Investing, Asset Allocation, Bond, Investing, Mutual Funds, Personal Finance, Stocks | 15 comments

Earn More by Rebalancing Your Asset Allocation What if I said that you could earn an extra one quarter percent return on your portfolio every year by doing a simple task? A recent Wall Street Journal article reported that investors who regularly rebalance their investment portfolios increase their returns. It takes about an hour to rebalance your asset allocation and you will likely receive an added return every year. Although 0.25% isn’t huge, every bit of investment returns adds up. Another solid reason to rebalance is to minimize risk. Even the most aggressive investor would prefer less investment volatility.  Here’s a...

Read More
Expert Financial Advice; What Not to Do With Your Investments Now

Expert Financial Advice; What Not to Do With Your Investments Now

By in Asset Allocation, Investing, Retirement | 20 comments

Is it time to sell your stock investments? If you have a workplace retirement account or brokerage account with investments in the US stock market you may be tempted to sell now. Markets are unpredictable and volatility is scary. Volatility is the Price You Pay for Returns Investing 101 informs that you need to take some risks in order to be eligible for a larger return. The problem with that reality is that no one enjoys seeing their investments decline in value. Even if you don’t know anything about investing or understand the mutual funds in your retirement account, you...

Read More
Robo Advisor Pros and Cons – The Definitive Answer

Robo Advisor Pros and Cons – The Definitive Answer

By in Asset Allocation, Investing, Money Management, Mutual Funds | 0 comments

Robo-advisors have been making headlines lately as a great substitute for traditional personal financial advisors. But is robo investment advice worth the hype? As with any decision regarding your money, it is essential to consider the pros and cons of robo advice before investing with a digital advisor. In particular, you should consider how robo investment advice stacks up against a financial advisor and which works better for your lifestyle. What is Robo Investment Advice? Robo advisors vary, depending on which platform you choose. Some robo-advisors are exactly what they sound like: based primarily on algorithms, these automated advisors...

Read More