The 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... Articles Tagged ‘Asset Allocation’
Why You Should Diversify Your Investments
The 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...
Wednesday, September 16th, 2015
The 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... How to Evaluate Your Current Investments
Regardless of what goals we’re trying to achieve with respect to our finances, or in any other aspect of our lives, being able to evaluate what we’re currently doing is essential to identifying the steps we can take to do things better.
Evaluating your investment portfolio allows you to understand how close (or far away) you are from your goals, whether the investments you’ve selected are meeting your expectations, whether the research you did to select those investments was accurate, and whether you should consider adjusting your investment mix going forward.
Here is some investment advice for making that portfolio...
Wednesday, April 24th, 2013
Regardless of what goals we’re trying to achieve with respect to our finances, or in any other aspect of our lives, being able to evaluate what we’re currently doing is essential to identifying the steps we can take to do things better.
Evaluating your investment portfolio allows you to understand how close (or far away) you are from your goals, whether the investments you’ve selected are meeting your expectations, whether the research you did to select those investments was accurate, and whether you should consider adjusting your investment mix going forward.
Here is some investment advice for making that portfolio... 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...
Tuesday, November 27th, 2012
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... Monitoring Your Investment Portfolio
So you have gotten with a professional investment counselor. They have given you advice on how to go about putting together your investment portfolio to best suit your needs. Now that you have laid out the money, how do you know what your stocks, bonds and other products are doing?
Investing is not a passive, one-time thing. After you go through the process of choosing where and how much to invest, that is only the beginning. Now the process of helping to manage that portfolio begins.
Remember when you were talking to your investment counselor? They probably asked you questions about...
Saturday, March 13th, 2010
So you have gotten with a professional investment counselor. They have given you advice on how to go about putting together your investment portfolio to best suit your needs. Now that you have laid out the money, how do you know what your stocks, bonds and other products are doing?
Investing is not a passive, one-time thing. After you go through the process of choosing where and how much to invest, that is only the beginning. Now the process of helping to manage that portfolio begins.
Remember when you were talking to your investment counselor? They probably asked you questions about... Diversify Your Portfolio to Manage Risk
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...
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... Important Money Decisions
After historic volatility in 2008 the current investment environment will continue to be strewn with potential challenges. Here are some important things to consider going forward:
1) Review your risk tolerance: Hopefully you have an investment plan, but that doesn’t mean you should let it sit for years without revisiting it. You should review your risk tolerance you’re your financial advisor and be sure your portfolio is allocated properly. Many portfolios have gone out of balance due to the large drop in equity values over the last 18 months.
2) Don’t abandon the investment ship: Market downturns are always filled with panic...
Tuesday, February 10th, 2009
After historic volatility in 2008 the current investment environment will continue to be strewn with potential challenges. Here are some important things to consider going forward:
1) Review your risk tolerance: Hopefully you have an investment plan, but that doesn’t mean you should let it sit for years without revisiting it. You should review your risk tolerance you’re your financial advisor and be sure your portfolio is allocated properly. Many portfolios have gone out of balance due to the large drop in equity values over the last 18 months.
2) Don’t abandon the investment ship: Market downturns are always filled with panic... 
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