Archive for March, 2011
Post #17 Financial Planning Made Simple
I just finished a very good book called Your Money Ratios: 8 Simple Tools for Financial Security by Charles Farrell so I thought I would provide a quick review. The goal of the book is to give the reader smart but simple guidance so that they can reach their retirement goals. In doing this Mr. […]
Post #16 – How the Financial Crisis Moved Our Retirement Date Forward by 2 Years
My last post discussed the importance of periodically “Re-balancing” your portfolio as a practice that everyone should incorporate into the management of their retirement assets. I practiced this method throughout the recent financial crisis and the results worked out so well that we moved our retirement date forward by 2 years. In this post I […]
Post #15 – Managing your Investments in a Bear Market
This post will discuss an investment principle that is both simple to understand and easy to implement, the practice of “Re-balancing.” Re-balancing is a concept that many of you may already be familiar with. But I think it is one of the most important investment management principles you can follow, especially in a long term […]
Post #14 – Equity Allocation – Some Final Comments
In my previous post, post #13, I suggested a couple ways to decide on your appropriate asset allocation. But, what should a person do if the average annual return, indicated by the suitable equity allocation, will not provide the long term results necessary to retire? This is a situation that, undoubtedly, applies to many people […]
Post #13 – The Importance of Equity Allocation, Part III
In Post #12, I discussed the importance of managing your investing emotions through maintaining your portfolios volatility. This is done by deciding on the appropriate percentage equity allocation. Deciding on the proper asset allocation is a very important decision for every investor. It is also a personal decision as each person’s risk tolerance is different. […]
Post #12 – The Importance of Equity Allocation, Part II
In my last Post, “Post #11 – The Importance of Asset Allocation, Part I,” I make the point that the percentage equity allocation of your portfolio is the major determinant of its long term returns. I’m sure many of you are probably thinking “Great, next he’ll be telling us the world is round!” But my […]
Post #11 – The Importance of Equity Allocation, Part I
The single most important concept in investment planning is asset allocation. At its most basic level, asset allocation is deciding how to apportion your portfolio between equity assets and fixed income assets. This is a fundamental decision every investor must make. Asset allocation is important because, on a long term basis, it affects both your […]
Post #10 – First Rule of Investment Planning
Based on what I see in the media concerning stocks and other investments, it’s not surprising that some who have an interest in investing for retirement may get so bewildered that they just want to give up. I sympathize with these people. All the media outlets offering confusing and conflicting investment advice can be daunting, […]
