I have previously discussed why rebalancing your portfolio is a good idea. In short, by reducing or adding to your holdings in different asset classes, you can smooth your returns and keep risk within a level you can tolerate. How do you actually do it? Well, rebalancing is definitely an…
Browsing: asset-allocation
Very few private investors give much thought to asset allocation, even though it’s far more important than picking stocks or funds in determining your investment returns. Even worse, those who do set up a nicely diversified portfolio often forget all about their ideal asset mix once they’ve made their initial…
An asset is an item of economic value that can be converted into cash. Assets likely to be held by private investors include: cash in bank deposits, securities (such as shares issued by private companies, and government or corporate bonds), property, insurance policies, foreign currencies, cars, art and antiques. Company…
So you’ve done your four financial crisis checks: Your savings are safe They’re earning more interest You’ve got a plan to pay off any debt Your mortgage is sorted for the foreseeable future. Time to turn over and fall back to sleep? Possibly. I’m serious! It’s often too late to…
