Unfortunately, most people do not have the tools nor the training to help themselves with the critical
decisions about asset allocation, about savings, and about spending during retirement.
One of the benefits of a passive DIY investment philosophy is that you just have to
worry about asset allocation and not individual security selection.
«I Tested a Wide Variety of
Assumptions About Asset Allocation, Valuation - Based Decision Rules, Whether the Period Is 10, 20, 30 or 40 Years, and Lump - Sum vs. Dollar - Cost Averaging To Show That the Results Are Quite Robust to Changes In Any of These Assumptions.»
-LSB-...] About Asset Allocation, PT Money: 20 Tips for a More Affordable Auto Insurance Policy Squawkfox: Free Budget Worksheets and Household Net Worth Spreadsheet Debt Free Adventure: Exchange Traded Funds -LSB-...]
A
Word about Asset Allocation In Modern Portfolio Theory (see this article for an explanation and history), diversification includes the idea of investing in different asset classes.
Fortunately I'm young and my portfolio has a good chance of recovering but the real mess is clearly with people in their early 60s or those who were approaching retirement... I'm confident that conventional
wisdom about asset allocation is going to change as a result of this bear market.
I'm never going to be able to provide specific investment advice — it's just not possible, and I'm not qualified — but I can write another article in the near
future about asset allocation theory.
But - then I would
explain about asset allocation, and how the soon to be retired person had better be properly allocated if they weren't all along so that the impact of down years is mitigated.
Section 5.5 of my stock market investing Ebook talks all
about asset allocation basics and helps you to decide what type of asset allocation will be right for you once you have a feel for how much risk you should be taking.