Asset Allocation

Why You Should Diversify Your Investments

Wednesday, September 16th, 2015
Why You Should Diversify Your InvestmentsThe concept of investment diversification is certainly nothing new. The old adage “don’t put all your eggs into one basket” illustrates the concept perfectly. Diversification means that rather than invest all your funds in a single asset, you spread your money across different types of investments. This certainly requires a bit of extra effort and cost. After all, it’s certainly much easier to monitor and manage a single investment and is to oversee a number of different investments. But the advantages of diversification greatly outweigh the downsides. Here are some reasons why it’s important to maintain a healthy degree of...

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Should You Use an Asset Allocation Analyzer?

Tuesday, November 27th, 2012
Should You Use an Asset Allocation Analyzer?One of the most common struggles for any individual who is investing or saving for retirement or other long-term goals is coming up with an appropriate asset allocation. “Asset allocation” refers to how you have your various investment funds distributed among different investment types. Asset allocation is often stated in terms of equity versus debt investments, large company versus small company (in the context of stock investments), investment-grade versus non-investment-grade (in the context of debt investments), and U.S. versus non-U.S. investments. There are a number of different asset allocation analysis tools available online to help you understand your portfolio...

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How Risky Is Your Investment Portfolio?

Friday, April 23rd, 2010
In investment circles you may hear words like “risk” and “diversification.” It relates to how well your investments can do or not do. If you have an investment portfolio or are getting into investing, how you build your portfolio is very important. Everyone can benefit from investing. It is a proven way to make your money work for you in the long-term. You have earned it; why let it sit and basically gather dust? It could be working just as hard as you did to get it. That is where investing comes in. A portfolio refers to the investment vehicles that...

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Diversify Your Portfolio to Manage Risk

Thursday, December 31st, 2009

There's an old adage that says we shouldn't keep all of our eggs in one basket. This can be interpreted in a number of ways. For investors, it is synonymous with diversifying their portfolios. Beginning investors often put all of their money into one type of investment. They might purchase stock in a company that is doing well, or a low-risk government bond. These investments are usually quite safe, so the investor is unlikely to lose any money. But they also offer a low rate of return, so investors won't get rich from them either. Those who are looking to get rich...

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