Arbor Asset Allocation Model Portfolio (AAAMP) Blog

Arbor Investment Planner – Do It Yourself Investment Management

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Entries Tagged as 'active asset allocation strategy'

Investment Management – Do It Yourself

April 14th, 2010 · 1 Comment · AIP Money Management Tips, Investment Planning, Online Investing For Dummies, Portfolio Management

There are at least 5 important advantages to a Do It Yourself Investment Management strategy.
 
1.     Increase your investment returns
2.     Reduce your investment expenses
3.     Help you understand your risk
4.     Allow you to avoid following the crowd
5.     Stay in control of your own assets / Make adjustments quickly
 
The past decade has been a good example of how [...]

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Is There a Difference Between Market Timing and an Active Asset Allocation Strategy?

March 29th, 2010 · 2 Comments · Portfolio Management, Risk Management

By Ken Faulkenberry
The stock market has earned an average of a little less than 10% per year over a long period of time. But the average investor’s actual returns are at least two percentage points lower because people tend to buy when prices are high and tend to sell when prices are low.  Because people [...]

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Should You Abandon Your Target Date Mutual Fund?

February 19th, 2010 · 1 Comment · AIP Money Management Tips

AIP Money Management Tips
 
The concept of target date funds was to provide investors a single fund to invest toward their “target date” retirement. The idea was the fund would become more conservative as it moved towards the target date, for example 2010 or 2030. In reality, these funds surprised investors with gigantic losses in this [...]

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Portfolio Rebalancing: A Powerful Risk-Control Strategy

December 27th, 2009 · 1 Comment · Portfolio Management, Risk Management

By Ken Faulkenberry
Rebalancing is one if the most under utilized and under appreciated aspects of investing. An active asset allocation strategy, which requires frequent rebalancing based on current opportunities and risk, is the most successful strategy in today’s investment environment.
 
The purpose of diversification is to reduce risk by holding investments that will behave differently at [...]

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Consider Risk When Allocating Your Portfolio

November 30th, 2009 · 2 Comments · AIP Money Management Tips

AIP Money Managment Tip
 
Even if you’re able to generate considerable income, you have to know how to protect and preserve your capital. Investors who have employed a buy and hold strategy have lost a decade worth of growth. When the market just kept going up, it was easy to think it would continue and not [...]

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Analyzing Risk

November 27th, 2009 · No Comments · Portfolio Management, Risk Management

Volatility (risk) doesn’t seem to bother most Investors during bull markets.  This is one of the reasons Investors are “lulled” into taking on additional risk as markets rise.  The collapse of the credit and housing markets and the resultant damage to investments should cause everybody to pay more attention to risk.
 
Studies show that investments with [...]

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Is Buy And Hold A Viable Strategy?

November 14th, 2009 · 3 Comments · Investment Planning, Online Investing For Dummies, Portfolio Management, Risk Management

By Ken Faulkenberry
The purpose of asset allocation is to reduce volatility of the overall portfolio by holding different asset classes that are not correlated. Holding multiple uncorrelated assets means assets will be performing differently by rising and falling at different times. This helps smooth out returns; reducing volatility (risk) of the total portfolio.
 
A buy and [...]

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