Personal Finance & Money Stack Exchange
Personal Finance & Money Stack Exchange

Questions tagged [asset-allocation]

for questions that relate to asset allocation. Asset allocation is an investment strategy that attempts to balance risk versus reward by adjusting the percentage of each asset in an investment portfolio according to the investors risk tolerance...

Asset allocation is an investment strategy that attempts to balance risk versus reward by adjusting the percentage of each asset in an investment portfolio according to the investors risk tolerance, goals and investment time frame.

An investment strategy that aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goals, risk tolerance and investment horizon.

The three main asset classes - equities, fixed-income, and cash and equivalents - have different levels of risk and return, so each will behave differently over time.

Asset allocation - From Wikipedia

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What is the best asset allocation for a retirement portfolio, and why?

Based on financial conversations I've had with trusted family members, I believe that asset allocation is one of the more critical things to "get right" during retirement savings. Based on an aggressive investing portfolio and timeline, where can I…
CrimsonX
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Justification for aggressive investment strategy when young?

I've frequently heard that the conventional wisdom is to be invested in an 'aggressive' investment strategy when young, and as you approach retirement age, migrate to a more conservative strategy. Given that I've heard it so often, I figure... it…
Rob P.
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50% portfolio in single stock, JPM - appropriate for 80 year old?

I've recently taken a look at my 80-year old mother's finances, run by a money manager at Morgan-Stanley. Half of her $3.5M portfolio is in a single stock, namely JPM = J.P. Morgan. This seems to me irregular both in terms of risk, lack of…
Concerned
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What does one typically use as a money reservoir for stocks, when they are "on sale"?

I've read about people who claim to have made a lot of money investing in stocks (or funds) after a crash. They say the stocks were "on sale". But I wonder, where did they get the money to buy these stocks? Certainly they didn't use their emergency…
Ken - Enough about Monica
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Is there any benefit to investing in an index fund?

Does an index fund comprise of stocks that mimic the index? So when the index is altered to include new players/exclude old ones, the fund also adjusts? But how can this be, since index funds are not actively managed? And if the index fund just…
Victor123
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What is a good asset allocation for a 25 year old?

I have a mid-sized portfolio (under $100K). And am currently in 100% stocks. I have seen some advice being given that states 80/20 bonds will yield similar returns as 100% stocks with less volatility.
Sheehan Alam
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What are some examples of "fixed income" investments?

I'm using an online tool that my broker provides for balancing my portfolio according to my investor profile and it breaks down the suggested allocation into the following categories: Large Cap Equity Small Cap Equity International Fixed Income…
JohnFx
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Why I cannot find a "Pure Cash" option in 401k investments?

I am of an opinion that I should decide where my money should get invested and if it should get invested at all or not. When I looked at the investment options I have with my 401k money, I figured out that there are many Mutual Funds that I can…
Saurabh Patil
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Are there index tracking funds that avoid the "buy high - sell low" problem?

An index tracking fund is a fund that buys direct stocks with a view to directly matching a particular index (e.g. the S&P500 or Russell 2000). One way to allocate assets in such a fund is to weight the share value held by the fund by the market…
Peter K.
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What is most time-efficient way to track portfolio asset allocation?

I've recently decided I wanted to track my investments over time so that I could accurately determine really cool financial things like: My actual asset allocation My actual rate of return over time I had a couple goals for doing this: If I know…
CrimsonX
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Any Experience with the Gone Fishin' Portfolio?

In doing research on How to Select IRA Investments, I stumbled across the Gone Fishin' Portfolio. This link where I found out about the portfolio claims that it is based on the 1990 economics Nobel Prize. Is that a correct claim? If you do know…
justkt
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Should I exclude bonds from our retirement investment portfolio if our time horizon is still long enough?

My wife and I (ages 35 and 38) have 25-30 years until we reach retirement age, and I'm doing some research regarding our asset allocation. In addition to various podcasts, articles, and online posts, I've read A Random Walk Down Wall Street, The…
Jeff Levine
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What fraction of a portfolio should P2P lending comprise?

Based on what I understand, traditionally we are supposed to put 70% money in stocks and 30% money in bonds (based on individual age, I am 33 right now). I have been experimenting on P2P lending and robo investing and I think there is a space for…
Ved
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Asset allocation software: Application or tool to help me rebalance my investment portfolio?

I'm looking for an application that can help me rebalance my investment portfolio. I'm not looking for something that will suggest percentages for each asset class. I'm looking for something that, given my desired portfolio (% in each class) and…
KeithB
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Couch Potato Portfolio for Europeans?

I recently came across the Couch Potato Portfolio concept and was happy to find an investment strategy that made sense to me. Its origin seems to be the Canadian version, and it has been translated for investors in the U.S., but I'm in Europe. I…
Thomas Vander Stichele
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