Which IRA is the best, Traditional or Roth; is a debate that has been going on for years. This year the debate has become more relevant for millions of investors because the income limit for converting a Traditional IRA to a Roth IRA has been eliminated. Many experts take a side, but owning both kinds [...]
Entries Tagged as 'diversification'
Traditional IRA, Roth IRA, or Both?
January 11th, 2010 · 1 Comment · Individual Retirement Accounts (IRAs), Investment Planning
Tags: convert to a Roth IRA·covert a traditional IRA·diversification·IRA contributions·Roth IRA·tax deduction·traditional IRA·Wealth Builder Newsletter
Purchasing Index Funds Results in Mediocre Returns (or Worse)
January 3rd, 2010 · 2 Comments · Portfolio Management
There is a time a place for index funds within a portfolio. Making index funds a small part of your portfolio can provide added diversification and return to your portfolio when done properly. But investors who only purchase index funds will almost certainly guarantee a mediocre performance for their portfolio.
Index funds have a damaging long [...]
Tags: buy and hold strategy·diversification·index funds·portfolio
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 [...]
Tags: AAAMP·active asset allocation strategy·Arbor Asset Allocation Model Portfolio·Asset Allocation·buy and hold strategy·buy low·diversification·Investment Management·portfolio rebalancing·rebalancing·risk·risk-control strategy·sell high
Economic Update – The Challenges We Face
December 7th, 2009 · 1 Comment · Economics, Investment Planning, Portfolio Management, Risk Management
By Ken Faulkenberry
The economy is going through profound changes trying to absorb the shock of two bubbles in one decade. We are currently facing high unemployment, large and growing deficits, and a ballooning national debt. Instead of implementing sound fiscal and monetary policies, government policies of the past decade have and are compounding our long [...]
Tags: AAAMP·AIP·Arbor Asset Allocation Model Portfolio·Arbor Investment Planner·Asset Allocation·baby boomers·deflation·diversification·economic update·inflation·mutual funds·over diversificaton·re-balancing·under diversification
Diversification – The Critical Element of Portfolio Management
August 8th, 2009 · 1 Comment · Investment Planning, Portfolio Management, Risk Management
By Ken Faulkenberry
Diversification is the single most important element of investment planning. Diversification is a portfolio strategy that reduces risk by combining different investments that are not correlated. The volatility (risk) of the portfolio is reduced because not all asset groups, industries, or stocks move together. The goal of diversification is to reduce risk.
Lack of [...]
Tags: active asset allocation strategy·asset allocated portfolio·Asset Allocation·asset groups·company specific risk·diversification·etf investing·etf portfolio·etfs·fund management risk·industry risk·Investment Planning·lack of diversification·market risk·model ETF portfolio·model investment portfolio·over diversification·Portfolio Management·portfolio strategies·reduce risk·risk
