Asset Allocation

NAPFA-fee only-Retirement Planning

Investing in Publicly Traded Equities vs. Direct Real Estate (Part 1)

Some investors choose to invest their savings in stocks while other others favor investing in directly real estate. Below is a brief list of the advantages and disadvantages of each. Advantages of Directly Owned Real Estate Leverage: The primary advantage of real estate is the ability to use leverage. Leverage is an investment strategy where…


What Does it Mean to Have a Balanced Portfolio

What Does it Mean to Have a Balanced Investment Portfolio

Your investment portfolio is most likely comprised of different types of investments, balanced in such a way that takes into consideration both your overall return objectives as well as your risk tolerance.  It is useful to understand the purpose and role each investment plays within a diversified, balanced portfolio. Stocks or equity, whether owned through…


How Risky Should Your Portfolio Be?

Would you rather have a guaranteed $10,000 today, or the opportunity to earn anywhere from $5000 to $20,000 over the next twelve months? Are you willing to risk a sure thing for the opportunity for more? Your answer to that question should be dependent upon two factors: your tolerance for risk and your ability or…


real diversification

Real Diversification: An Example

In a previous article, we discussed the idea that a properly diversified portfolio provides investors with an effective tool for reducing risk and volatility, without necessarily giving up a return. Below is an example of how diversification across asset classes really works. Let’s compare two blended index portfolios for the 20 year period ending December 31,…


Diversification: The Free Lunch of Investing

Among the most important tools available to investors is diversification. Diversification allows an investor to reduce investment risks while potentially improving investment returns. But even though the benefits of diversification have been well-documented and widely explained by some 60 years of academic research, the concept is at first glance, counterintuitive. After all, why in the…


Government Policies and Your Investment Portfolio

Last February, Newsweek magazine ran a cover story entitled “We Are All Socialists Now” in which the authors, Jon Meacham and Evan Thomas wrote: “The America of 2009 is moving toward a modern European state” and “more government intrusion into the economy will almost surely limit growth as it has in Europe, where a big welfare state has caused chronic high unemployment” (Newsweek, February 16, 2009).