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Asset Location Is As Important As Asset Allocation
The science of asset allocation gets a lot of attention in the personal finance realm but it only tells part of the story. In an ideal world, there would be no taxes or transaction costs, so asset...
View ArticleShould Risk Tolerance Determine Asset Allocation?
Last week, Morningstar writer Christine Benz wrote a piece entitled Four Investment Rules To Ignore in which she details investment “rules” that may seem logical at first glance but are actually...
View ArticleWhat’s The Ideal International Allocation?
Little more than a decade ago, most investment experts advocated keeping the vast majority of your money invested in the U.S. During the go-go tech economy of the 90′s, large-cap U.S. stocks were all...
View ArticleShould Young Investors Be 100% In Stocks?
Earlier this week, Mike at The Oblivious Investor wrote a post entitled Asset Allocation For Young Investors, Go “All-In?” in which he postulated that since stocks have historically been the...
View ArticleHas The Recent Market Turmoil Affected Your Risk Tolerance?
It’s often hammered into us that properly determining your risk tolerance is one of the keys to long-term investment success. I have often argued the same. However, there’s a gotcha: how can anyone...
View Article120 Minus Your Age In Stocks: The New Asset Allocation Rule Of Thumb
There’s something comforting in following the crowd. It is often said “it’s better to fail conventionally than succeed unconventionally,” which is why humans have always had a tendency to come up...
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I Changed My Roth IRA Asset Allocation
I recently changed my Roth IRA asset allocation, which had been static several years now. The reason for the changes wasn’t to chase performance, but to further diversify my portfolio now that I’ve...
View ArticleIn A Crisis, Correlation Goes To One
Diversification is a wonderful thing. It can increase the return and decrease the risk of your portfolio if used properly; however, it’s not a magic bullet. As we’ve been reminded in the last 18...
View ArticleHow Many Asset Classes Do You Need To Be Diversified?
Diversification is a fundamental tenant of portfolio theory and an integral part of any well-thought-out investing strategy. That said, the law of diminishing returns still applies. The...
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Alternative Asset Classes That Are Easy To Own
It has been argued before that you really only need three different asset classes to construct a balanced, diversified portfolio: domestic stocks, foreign stocks, and domestic bonds (John Bogle tends...
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