Diversification is a buzzword that constantly pops up in regards to investing. In theory, the concept seems simple — you spread your investment capital over a sufficient number of securities, and in enough asset classes, that you avoid taking a complete bath when the market declines. But theory and reality are two very different concepts.
There’s nothing that will affect the return of your investment more than proper asset allocation. Although it can be tricky, we share tips for investors to manage risk and diversify, to get the biggest gain on their money.
Preparing for retirement is mostly about building up a very large portfolio to carry through your golden years. But will you still need an emergency fund when you retire? The answer to that question is most definitely yes. In fact, you may even need a larger emergency fund when you retire than what you maintained […]
Managing risk is a critical part of investing, but also necessary in business. Let me explain. Most people get the idea of managing risk with investing. It’s one of the core tenants in investing. Don’t put all of your eggs in one basket. It’s obvious we don’t have control over many aspects with investing, so […]
When it comes to portfolio management, many experts recommend that you focus on asset allocation. Asset allocation is a strategy that involves building a portfolio around asset classes. You include certain percentages of stocks, bonds, cash, real estate, and other investments, depending on the goals for your portfolio. You don’t have to maintain static ratios […]
You probably know that one of the most important things you can do to build wealth is to invest. Investing can help you take advantage of compounding returns and grow your nest egg. However, in order to succeed at investing, it helps to have a plan. Here are 5 steps to creating a successful financial […]
Previously I discussed our asset allocation for retirement at the high level. This post is where the rubber meets the road. I’ll detail all the equities we own to achieve our goals. Like most things in life, planning asset allocation on paper is one thing, but implementing it is another story. The problem we have, […]
Correlation is one of those things, if you were absent that day in statistics class, you should learn it now. It will help you become a better investor. As I mentioned in my previous post Asset Allocation for Retirement; I want to minimize my risks, yet maximize my returns. It sounds paradoxical, but it’s true. […]
As I’ve mentioned in my profile, we have a decent sized nest egg for retirement. The million-dollar question (pun intended), is what assets should we invest in? To me, good asset allocation is the most important thing you can do to ensure long-term success. For this post, I’m not going to go into the technical details […]