Sentences with phrase «problem with asset allocation»

The problem with asset allocation is that there is no right answer.

Not exact matches

thanks, and yes, a pittance of a pension and regular checkups keep us on budget and head off any problems — best decision i ever made (financial or otherwise) was serving our country doing search - and - rescue, oil and chemical spill remediation, etc. (you can guess the branch of service)-- along the way, frugal living, along with dollar - cost averaging, asset allocation, and diversification allowed us to retire early — Vanguard has been very good over the years, despite the Dot Bomb, 2002, and the recession (where we actually came out better with a modest but bargain retirement home purchase)... it's not easy building additional «legs» on a retirement platform, but now that we're here, cash, real estate, investments and insurance products, along with a small pension all help to avoid any real dependence on social security (we won't even need it at full retirement age)-- however, like nearly everybody, we're headed for Medicare in several years, albeit with a nice supplemental and pharmacy benefits — but our main concern is staying fit, active, and healthy!

Trying to beat the market can come with all sorts of potential problems that create conflicts between our financial goals and our asset allocations.

And this brings us to the primary problem with bond investing and asset allocation in general — most people don't apply the right maturity and / or duration to their portfolios.

The problem is that in many cases investors pay a recurring annual fee of anywhere from 0.2 % to 1.5 % of assets for a one - time setup of a portfolio pie - chart (frequently with small variations from the adviser's «moderate» allocation template), followed by periodic rebalancing and reports.

If SWR is lower than 3 %, mortgage paid off, asset allocation is mapped out, college funds in good shape (well as good as they can be in this rather messed up system we have here) and safe cash reserve is 3x of living expenses, I see no reason why retiring early with kids would be a problem.

(As a value investor my problem with a strategic asset allocation is that it ignores the most important variable: valuation).

You just have to arm yourself with a bit of knowledge regarding the process of asset allocation so you put the problem of time in the proper context.

That's the one problem with a completly passive strategy, there's no room to move with fairly strong looking trends (still following passive investment, just a little active asset allocation).