Here are some of my favorite and the most interesting articles from my RSS reader that I thought you might enjoy:
- A Brief Introduction to Asset Allocation – A very important topic that I have not covered very much yet. Well worth your time reading this one!
- Investing in a Bear Market – Get Rich Slowly is one of the best personal finance blogs out there, and this post gives you some great tips and encouragement to help you through the market’s rocky road.
- Leave Your Money in the Bank. It’s Safe. – Great advice that people need to hear to calm their nerves in this bumpy economic climate.
- Photo/Video All of Your Personal Property – With as often as members of the military move around the country and the world, this piece of advice is imperative!
- Online Calculator Calculates How Much It Costs To Drive – A fun look at several websites that will tell you how much it will cost you to drive across the country to your new duty assignment. Now we will know exactly how little our travel allowances are really covering us.
- How Your Credit Score Affects Interest Rates – A very sobering look at how intertwined your credit score is with the rest of your financial life.
What the heck is RSS you may be asking? Great question. I have no idea…it’s like magic. But, other people know. Here is a great post explaining it.
October 29, 2008 at 3:56 pm |
Thanks for the mention!
October 29, 2008 at 5:08 pm |
Asset allocation is a key topic in investing. Unfortunately, many people don’t even know what it is. So it’s always great to start learning about it. The problem with the first article to which you link is that it does not discuss true asset allocation. It talks about static rules, like 60% stocks / 40% bonds. These static rules do not respond to changing market conditions. So they work well under the right market condition but badly under the wrong ones.
True asset allocation is maximizing expected returns while limiting risk. A fixed rule like 60/40 does not do that. The optimal asset mix — the mix that maximizes expected returns while keeping the risk limited — changes with changes in the market.
Our TSP investment method does use a true asset allocation strategy. This strategy yields high long-term returns — higher than those of any of the TSP funds. What’s more, the strategy does relatively well even when the “market” does poorly. That’s because when stocks become too risky, the strategy automatically responds to the changing market conditions and shifts out of stocks. For instance, we’ve been completely out of stocks since mid-July.
November 6, 2008 at 11:02 am |
thx for the holler! good lookin’ out…i’ll have to check around here some more