Reader Question

Best Asset Allocation Based On Age & Risk Tolerance

Best Asset Allocation Based On Age & Risk Tolerance

By in Advanced Investing, Asset Allocation, Investing, Reader Question | 14 comments

How To Figure Out the Best Asset Allocation For You Graham from Moneystepper asks; What metric (rule of thumb) would you recommend for asset allocation based on age and risk appetite? Graham’s question is not as simple as it might seem. Let’s attack it from several investment angles and throw in a bit of research as well. Quick Primer: What Is Asset Allocation?   The asset allocation decision divides total investable funds by percent into specific investment categories. An asset allocation represents the investor’s choice of broad asset classes and the percentages distributed across the categories. The two most common...

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How to Invest Internationally Guide

How to Invest Internationally Guide

By in Asset Allocation, Investing, Mutual Funds, Reader Question, Stocks | 2 comments

How Much Should I Invest Internationally?-Part 2 Please check out: International Stock Investing Guidelines-Part 1 In responding to Brian of Luke 1428 Website’s question yesterday, “What percentage of my stock investments, if any, should I allocate towards international stocks and emerging markets (the latter of which seems to have more volatility)?”, you learned the difference between developed and emerging international markets. Since the U.S. is only one third of the world markets, and in order to participate in world economic growth, it’s important to invest internationally. Another reason to invest internationally is that international markets don’t move in lock step with...

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International Stock Investing Guidelines-Part 1

International Stock Investing Guidelines-Part 1

By in Investing, Mutual Funds, Reader Question | 1 comment

How Much of My Portfolio Should I Invest Internationally?-Part 1   Brian, of the Luke1428 website asks, “What percentage of my stock investments, if any, should I allocate towards international stocks and emerging markets (the latter of which seems to have more volatility)?” Brian asks an important investing question. There’s lots of discussion about the importance of diversification. Yet, ‘How much of my portfolio should I invest internationally?’ isn’t an easy question to answer. All but the newest investors know about diversifying within your own country. And most of us understand that it’s important to diversify internationally. But how...

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Would You Invest in a 100% Muni Bond Portfolio?

Would You Invest in a 100% Muni Bond Portfolio?

By in Advanced Investing, Asset Allocation, Bond, Investing, Reader Question | 0 comments

Is a 100 Percent Municipal Bond Portfolio Superior to One of Diversified Investments? The recent “reader question” article, “Should I Invest in Bonds Even Though I Might Lose Money?” garnered some fascinating investing conversation. Among the thoughtful comments, one in particular stood out, because it was contrary to the typical investing viewpoint. Randy C.H. responded, “Stocks, Never. Short term bonds? Not for me. Go to FMSbonds.com and READ!!! Buy short term ONLY if you have a need at a specific date. I bought municipal bonds to mature for and during my daughter’s college. Other than that I bought and...

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How Can I Tell if I’m On Track for Retirement?

How Can I Tell if I’m On Track for Retirement?

By in Asset Allocation, Investing, Money Management, Personal Finance, Reader Question, Retirement | 0 comments

Reader Question: Am I On Track for a Secure Retirement? “Barbara, I started investing late and although I have a military pension, a 401k, and brokerage accounts; I wonder if I am track to a comfortable retirement.  I use commission free ETFs in a taxable account.”   You’re doing what you think is right, saving, investing, living modestly, but how do you know if you’re on track for retirement? This question from a reader echoes a common concern. After all, no one wants more life than money! How to Find Out If I’m On Track for a Secure Retirement?  Here’s...

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Is a 7% Future Long Term Return Achievable?

Is a 7% Future Long Term Return Achievable?

By in Asset Allocation, Bond, Investing, Reader Question, Stocks | 15 comments

Asset Classes Matter In a previous article, I received the following comment, which inspired me to answer the question, “Is a 7% future long term return achievable?” Little House commented: “I like how you broke down the asset classes percentages of stocks and bonds. Do you really think we can expect an average return of over 7 percent over the next 30 years? My husband and I were just discussing how savings rates are so low and have been for 10 years. We remember when we were kids in the 80′s that they were up to 12 percent! We can’t fathom...

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