Investment Help

If you are seeking investment help, look at the video here on my services. If you are seeking a different approach to managing your assets, you have landed at the right spot. I am a fee-only advisor registered in the State of Maryland, charge less than half the going rate for investment management, and seek to teach individuals how to manage their own assets using low-cost indexed exchange traded funds. Please call or email me if interested in further details. My website is at If you are new to investing, take a look at the "DIY Investor Newbie" posts here by typing "newbie" in the search box above to the left. These take you through the basics of what you need to know in getting started on doing your own investing.

Wednesday, April 14, 2010

DIY Newbie - Step 1 - asset allocation

By request from a follower, this is the first "newbie" post.  The intention is to give an actionable, bare-bones, approach to investing.  This is not to say that a more in-depth approach isn't more preferred - it is.  It is always worthwhile understanding what you are doing.  ,Along the way I'll mention how to get a more in-depth understanding without having to take a graduate course in investments.  Fortunately, we've had some really smart people break down this process in readable prose.

Step 1 - Decide on the percentage of assets to invest in stocks and bonds.  A popular asset allocation is 70% stocks/30% bonds.  Asset allocation goes a long way towards explaining investment performance.

Here is a link to a simplistic asset allocation tool:  asset allocation tool.  Play around with it.  Slide the little triangles and watch the pie pieces change in size.

Look at the questions it asks.  Tomorrow I will shed more light on what is going on and what the questions mean.

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