Login Form

Your Practical Investment Guide

A must-read:

by
Roger C. Gobson
Download The Article

The Rewards of Multiple-Asset-Class Investing

Let every man divide his money into three parts, and invest a third in land, a third in business, and a third let him keep in reserve.” — Talmud Circa 1200 B.C. – 500 A.D.

Asset allocation is not a new idea. The Talmud quote above is approximately 2,000 years old. Whoever said it knew something about risk. He also knew something about return. He may have been the world’s first proponent of asset allocation. Is it still a good idea today?

by
By Paul B. Farrell, MarketWatch READ THE WHOLE ARTICLE

Six reasons why Wall Street hates Lazy Portfolios

Lazy Portfolios give investors a far superior alternative than gambling retirement savings in Wall’s Street’s casino

Listen closely: The No. 1 reason Wall Street, fund insiders and your stock broker hate the Lazy Portfolios strategy is simple: They don’t make money unless you buy, sell and trade. No commissions. No fees. They can’t get rich, or richer, unless you’re playing at their rigged casino, where the house always wins.

In the decade ending in 2010, Wall Street’s stock market lost an inflation-adjusted 20% of America’s retirement money. Your money.

All you need is a simple, well-diversified portfolio of between three and 11 low-cost, no-load index funds to create a long-term portfolio that wins in bear and bull markets. And you do it with no market timing, no trading, no commissions. Lazy Portfolios are that simple.


Principles

Diversification

Deep and meaningful diversification is achieved by investing in different asset classes like stocks, bonds, real estate, precious metals, etc. The long term result is lower risk and higher returns of the portfolio compared to its components… more

Asset Allocation

There is already enough statistical data asserting that passive index strategies outperform active strategies in the long run. It is impossible even for professional market analysts and money managers to forecast and time the market for long time periods… more

Rebalancing

Once you set up an index portfolio all you have to do is to stick to the initial (target) asset allocation by periodically rebalancing the portfolio… more

Expenses

It is very important for successful investing to keeping expenses down. Although management and trading fees may not seem such a burden, they can reach up to 40% of your returns in the long term… more