| Search by tag or site | Login to my blog ? Start my own blog |
 |
Millionaire Now! by Larry NusbaumThis blog is based on the organizational principles found in my new book, "Millionaire Now! - A Financial Toolbox with Seven Steps to Wealth". |
MY ASSET ALLOCATION MODEL FOR GROWTH & INCOME:
Posted on 08/10/2006 13:19 PM | Link | Post Comment
To be used when the market(s) are trading above the 200 DMA:
(and, to manage your 401K. Do not buy company stock in your 401k)
Diversify by using Mutual Funds and/or Exchange Traded Funds
According to William Bernstein, in his book “The Intelligent Asset Allocator”:
1. The key to long-term success in the stock market lies in a coherent strategy for allocation among broad categories of assets, principally foreign and domestic stocks and bonds.
2. Asset allocation is the only factor affecting your investments that you can actually influence.
3. Nobody consistently calls the market, i.e. no one consistently times the ups and downs of the stock market.
4. "Market timing and stock or mutual fund picking are nearly impossible long-term. They are at best a distraction."
5. Asset allocation policy was 10 times as important as stock picking and market timing combined, according to two studies Gary Brinson did of 82 large pension funds in the late 1980s.
(and, to manage your 401K. Do not buy company stock in your 401k)
+ Large Cap Stock Funds - Growth, Value and Blend: 10%
+ Mid Cap Stock Funds - Growth, Value and Blend: 10%
+ Small Cap Stock Funds - Growth, Value and Blend: 20%
+ International Stock & Bond Funds (Global): 20%
+ Real Estate Funds: 10%
+ Intermediate-term Bond Funds: 10%
+ Short-term Bonds Funds: 10%
+ Commodities and Natural Resources Funds: 10%
Diversify by using Mutual Funds and/or Exchange Traded Funds
According to William Bernstein, in his book “The Intelligent Asset Allocator”:
1. The key to long-term success in the stock market lies in a coherent strategy for allocation among broad categories of assets, principally foreign and domestic stocks and bonds.
2. Asset allocation is the only factor affecting your investments that you can actually influence.
3. Nobody consistently calls the market, i.e. no one consistently times the ups and downs of the stock market.
4. "Market timing and stock or mutual fund picking are nearly impossible long-term. They are at best a distraction."
5. Asset allocation policy was 10 times as important as stock picking and market timing combined, according to two studies Gary Brinson did of 82 large pension funds in the late 1980s.
- Dow Dips Below 8,000 Threshold, Reaching April 2003 Levels
- Some Insight From The Blogs:
- Canslim.net Morning Comment And Links (for Traders)
- Stocks Fail To Turn Up; Sec's Shorting Ban On Financial Shares Expires
- Nasdaq Technical Picture - Fresh Multi-year Lows
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
- January 2008
- December 2007
- November 2007
- October 2007
- September 2007
- August 2007
- July 2007
- June 2007
- May 2007
- April 2007
- March 2007
- February 2007
- January 2007
- December 2006
- November 2006
- October 2006
- September 2006
- August 2006
- July 2006
- Millionaire Now!
- The 7 Steps to Millionaire Now!
- Build Your Financial Plan
- RETIRE RICH: Survival Guide
- ASSET ALLOCATION MODEL
- THE BIG ROLLOVER IS HERE
- THE END OF THE GRAND SUPERCYCLE?
Examples
ATM Wallstreet - Mon Oct 06, 2008 03:39PM
Made several great trades today. Traded the QID, QQ [read more]
Made several great trades today. Traded the QID, QQ [read more]
ATM Wallstreet - Tue Oct 07, 2008 10:07PM
Today we have the Fed speaking and release of Fed mi [read more]
Today we have the Fed speaking and release of Fed mi [read more]
Morpheus Trading - Tue Oct 07, 2008 08:33AM
NOTE: Please click on the charts below to enlarge them [read more]
NOTE: Please click on the charts below to enlarge them [read more]
<< My Home | TheMoneyBlogs Home