Asset Allocation Resources
Asset Allocation - Introduction to Asset Allocation
Asset allocation is the practice of diversifying assets between different asset classes. This article explains the theory behind asset allocation and provides sample allocation models for various life stages including early career and retirement.
Asset Allocation 101
This short, to-the-point overview of asset allocation was designed for those who are not familiar with the term and want to understand the reasons is might be a good risk management strategy for their portfolio of investments.
Active vs Passive Asset Allocation
There are two schools of thought in the investment world. One focuses on active asset allocation, the other on passive asset allocation. What's the difference, and which camp should you select for your own household?
Asset Allocation Model for Small Business Owners
If you own a small business, you de facto hold much of your wealth in the form of equity. That has implications for your asset allocation model.
Asset Allocation Rebalancing
From time to time, you may need to rebalance the investments in your portfolio. To know what this means, and understand the implications, print this article and use it as a guide to the basics.
Asset Positioning Asset Allocation Model
The tax practice of asset positioning involves holding certain types of investments in certain types of structure to minimize the amount of money you have to send to the Federal, state, and local governments each year. Done correctly, it can be an easy way to grow your wealth, while minimizing your taxes at the same time.
Balanced Asset Allocation Model
If you want a portfolio balanced between different asset classes, this allocation model could be a good place to start looking for a solution that works for you and your family.
Capital Preservation Asset Allocation Model
When your primary concern is protecting what you already have, a capital preservation model is the best choice.
Deflation Asset Allocation Model
If you think deflation is coming, caused by economic collapse or deleveraging, you might consider a mix of investments that focuses on cash claims.
Exotic Asset Allocation Model
Hedge funds, private equity holding, and other unusual securities make up the exotic asset class and most are not appropriate for the typical household. Still, if you insist on learning about it, here are some thoughts. Take them for what you will.
Finding an Asset Allocation Model That Works for Your Investment Portfolio
There are four considerations you should factor into the equation when developing an asset allocation model for your investment portfolio. Here is a quick checklist to help you.
Growth Asset Allocation Model
When you are young, and trying to grow your money, a growth model is the key. You can't hold the same types of investments a retiree does and expect to reach your goals.
How I Would Invest If I Couldn't Buy Individual Stocks
Investing is really simple, especially if you focus on buying a collection of low-cost index funds or mutual funds from a company such as Vanguard, which operates in a mutual fashion so that the economies of scales flow through in savings to clients, rather than to stockholders of the money management firm. Here are my thoughts on asset...
How Pensions Change Your Asset Allocation Model
If you have a pension, your asset allocation should probably look very different from retirees who do not enjoy that stream of checks from a former employer.
Inflation Asset Allocation Model
If you believe inflation is going to increase in future years, you might consider owning a collection of assets that stand a good chance of combating, or at least lessening, the damage of this hidden wealth tax.
International Asset Allocation Model
If you are thinking about adding international investments to your portfolio, take a moment to check out this asset allocation model.
Market Capitalization Asset Allocation Model
Some investors prefer to manage their investment holdings by market capitalization - the size of the business as measured by the current quoted value of all shares of stock outstanding - due to the different characteristics of small, medium, and large companies.
Passive Income Asset Allocation Model
If you are looking to live on a stream of passive income from dividends, interest, and rents, this asset allocation model might be a choice to consider.
Precious Metals Asset Allocation
Precious metals - gold, silver, and platinum the most famous among them - are often part of an investment portfolio. How much is too much? How little is too little? Here are some thoughts to consider that might aid you in your path to wealth.
Real Estate Asset Allocation Model
If you are thinking about holding real estate, or want to invest significantly in tangible assets such as property, consider something like this allocation model.
Tactical Asset Allocation Model
The difference between tactical asset allocation portfolio management and value investing is that tactical asset allocation only seeks to find undervalued asset classes – not individual securities or investments.
The Dangers of Excessive Diversification
Diversification, although beneficial, can be carried too far. Excessive diversification can result in lower wealth building and portfolio growth. Discover how to build a reasonably diversified portfolio in this article.
The Talmud Asset Allocation Model
In one of the world's oldest books, an asset allocation model is laid out for investors that is used by some to this day.
Using ETFs to Make Asset Allocation Easy
Thanks to exchange traded funds, or ETFs, it is almost effortless these days to create a decent asset allocation model and stick with it. The costs are low, liquidity is often high, and thanks to regulations, the holdings and disclosures much clearer than they ever have been in the past.
You Don't Have to Invest in Stocks to Get Rich
When it comes to picking an asset allocation for your investment portfolio, stocks are normally on the top of everyone's list. What do you do if you are fundamentally emotionally incapable of investing in stocks? This poses an interesting challenge for a lot of new investors who don't have what it takes to find value in the market and wait out...