How To Take Charge Of Your Investment Asset Allocation

Choosing the right investment strategy is the key to reaching your investment goals by reducing risk and generating more revenue. The first step is to understand the definition of asset allocation, a term that will help you choose the right strategy and generate better returns.

What is Asset Allocation?

Asset allocation is the strategy of classifying and dividing the portfolio, into asset classes. These asset classes can be stocks, commodities, currencies, bonds, and money market securities.

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The One Accounting Skill All Stock Market Investors Need

Wall Street Two Signs

Investing and accounting go hand and in hand. Yet while many investors spend time looking at balance sheets and income statements, there’s one accounting skill that isn’t often talked about. And in my experience, it’s incredibly important to security analysis investing success!

So what is this mysterious accounting ability? Well, to put it simply, it’s about translating business accounting ratios and popular financial metrics into an easy-to-understand narrative that describes what’s happening. And although this can take some practice, it’s probably easier than you think.

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Is School Useless?

How many times is that guy going to say the word “congruent”?

I was sitting in a Panera a week ago, and overheard a conversation between two people in their early 20s. I wasn’t eavesdropping- the dude with the earnest look on his face and the goatee seemed to be talking a little too loud on purpose. Like he wanted people to hear him…

I tried to tune it out and listen to music on my headphones, but after the second use of the word congruent, I turned off my music. Now I was eavesdropping, but I kept the headphones in so I wouldn’t be noticed (c’mon you’ve done it too).

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What Lottery Tickets And A Range Rover Teach Us About Personal Finance

I saw a guy walking to his brand new Range Rover as he scratched off lottery tickets he’d just bought at the gas station. As I filled up my Honda, I watched as he got into his Range Rover- because I just wanted to convince myself that it was his car.

Now, I came up with these pressing questions and I really wanted to investigate:

  • Is he wealthy? Maybe he’s leveraged to the max and only leasing a Range Rover.
  • If he’s wealthy, did he get that way by playing the lottery? Odds are that he didn’t. This website states that the odds of winning the Missouri Lottery (my home state) are 1 out of millions, depending on the game you play. So, the answer is probably a no.
  • Did he get wealthy through some other means (work, inherited wealth, etc.) – and he simply plays the lottery for fun? That’s probably it.

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Trip to the Vet: A Personal Finance Story (Chap. 11)

Authors’ note: 

Explaining personal finance can be pretty dull. That’s a problem, if you need to learn personal finance.

On a plane from St. Louis to Seattle, I decided to try and fix the problem. What if I could wrap some personal finance concepts inside of a quirky (funny?) short story? My goal here is to present some information, and then add another step in the story. So, when you get to the end, you’ve been reminded of an personal finance concept- but you’ve received the information in a light-hearted way.

This blog post explains the benefit of funding a retirement plan, and how a retirement plan rollover works.

Anyway, that’s the goal here. The stories are written in chapter order, so that there is a logical flow for the reader. Enjoy!

Dan was on his way to the vet when Cindy called.

“Did you feed Louie this morning?”

“Yeah- I’m gonna be about 10 minutes every to the appointment”. Dan glanced at the clock on the dashboard.

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The Hungover Caddy: A Personal Finance Story (Chap. 10)

Authors’ note:

 Explaining personal finance can be pretty dull. That’s a problem, if you need to learn accounting or finance.

On a plane from St. Louis to Seattle, I decided to try and fix the problem. What if I could wrap some personal finance concepts inside of a quirky (funny?) short story? My goal here is to present some information, and then add another step in the story. So, when you get to the end, you’ve been reminded of an personal finance concept- but you’ve received the information in a light-hearted way.

This blog post explains the factors that impact your credit rating, and how you can take steps to correct your credit information.

Anyway, that’s the goal here. The stories are written in chapter order, so that there is a logical flow for the reader. Enjoy!

Dan noticed the logo on a golf shirt as he walked out the door of Panera: Old Hickory Stick. A young guy in his late teens was walking in, looking bleary-eyed.

Continue reading The Hungover Caddy: A Personal Finance Story (Chap. 10)