Reddit Reddit reviews All About Asset Allocation, Second Edition

We found 9 Reddit comments about All About Asset Allocation, Second Edition. Here are the top ones, ranked by their Reddit score.

Business & Money
All About Asset Allocation, Second Edition
Check price on Amazon

9 Reddit comments about All About Asset Allocation, Second Edition:

u/grapeape25 · 11 pointsr/uwaterloo

If you're just looking to learn instead of fulfilling a degree requirement then it is a probably more useful to pickup a book and do it yourself.

Some useful subs:

u/Chummage · 2 pointsr/FinancialPlanning

I've read about half of these. Pretty dry reading. I would recommend the following:

The Wealthy Barber

I Will Teach You to be Rich

Bogleheads' Guide to Investing

All About Asset Allocation

The basic point of all of the books above and in the article is that you aren't going to beat the pros in investing, in fact the pros can't even keep up the same record from year to year. Index funds are the way to go. Other books above go over what the asset allocation looks like and also goes over insurance and other things to make your finances sound.

As an aside, I never could stick with a budget until using the software YNAB and now that I'm doing a monthly budget I am seeing massive benefits.

u/meats_the_parent · 2 pointsr/financialindependence

I recommend reading Rick Ferri's All About Asset Allocation.

u/wetgear · 2 pointsr/bayarea

You're doing great you now have a very good emergency fund but you need to change where you are putting the money you save moving forward. Change your 401k contributions to 22%, this is about 18k/year (the yearly max contribution). Then open a ROTH IRA and contribute 5.5k annually. These are tax advantaged accounts, make the most of them. For both of these investments and your age you want about a 80:20 stocks:bonds ratio, you can use a target retirement date fund to get this ratio but make sure the fees are low (<0.2%). You mentioned you wanted something more liquid than a ROTH IRA elsewhere but the ROTH is the most liquid tax advantaged account available (You can withdraw your contributions tax and penalty free at any time. Your earnings need to meet certain criteria to not be penalized when withdrawn). Any remaining savings should go into a money market account where it can mildly/safely grow and become a downpayment on a house. If after all this you find you still have extra savings start a taxable investment account that is well diversified. Individual stocks are little more than gambling, sure you might hit it big but you may also lose it all. You're young, play the long game to get rich and you'll maximize your chances to do so.

Also read this book sometime before you are 30,

u/enjaydo · 1 pointr/financialindependence

My opinion on a holding individual bonds, is that I would only do it if: a. I wanted to provide myself near guaranteed cash flows (via a bond ladder) or b. had significant amounts (hundreds of thousands to millions) to invest in bonds.

If you know you will need money at a certain date in the future, individual bond purchases (ie: treasury direct) or CDs could be useful. The bond fund's price will fluctuate greatly with changes in rates, so you bear some risk of the price being low when you want your cash. This is the risk/benefit to weigh. I am not concerned about this as my emergency fund at LMCU gets 3% interest and would cover about 6 month of expenses. I also hold roughly 6 months of expenses in precious metals. I view PMs as currency diversification, not as an investment. I like diversification, so I hold my emergency fund in USD and PMs. My bond allocation is entirely through VBTLX currently. Consider tax efficiency of how you hold your bonds.

Rick Ferri has a book All about asset allocation that covers the concept of reducing volatility leading to higher long-term returns. It is a little less deep/technical than Bernstein.

Bernstein has a series I really enjoyed call "Investing for Adults". Rational Expectations (Book 4) covers the volatility/return relationship. He can get a bit technical this series, but I think it is worth reading if you are going to do your own financial planning. (Note: I am also a nerd and enjoy reading about these topics). Four Pillars was also a great read.

u/william_fontaine · 1 pointr/investing

One of the best intro books I've read that covers different assets is "All About Asset Allocation" by Rick Ferri:

u/strolls · 1 pointr/UKInvesting

Tim Hale's Smarter Investing to start with, if you haven't already.

Then Rick Ferri's All About Asset Allocation looks ideal - I haven't read it myself, but it's in the top recommendations on the Bogleheads wiki and from the description there it's perfect for you. But read Smarter Investing first.

You've made a number of active investment decisions. Your portfolio is a bet that returns from technology companies (Framlington Global Tech, whose 3 largest holdings are Apple, Google and Facebook) will beat the market average, as will anything picked by Neil Woodford.

The US has about 7 times the market capitalisation of the UK, but you've bought equal amounts of the FTSE 100 and S&P 500 funds. Why did you make that decision? However most of what you have held by Farmington will probably be in the S&P 500, too (the top 3 companies are, for a start - 30%), so you have overlap there - do you know how much?

You've probably got a global spread in the Legal & General fund, but I've already said how you've favoured the US & the UK, and you've also chosen to bet on Japan over Europe. You have about £65 in AEON Fantasy Co., Ltd, and not a penny of Halfords or Debenhams stock.

The majority of professionals don't beat the market average. [1, 2, 3] Your selection is fine if you've chosen it on the principle you, and hence it, can but if you just chose it at random then you should at least ditch the funds with the highest costs (i.e. Woodford).

Your portfolio should have a purpose, and it should be constructed to meet that purpose. If your purpose is as simple as "I want to invest in stocks" then you can do that by buying a single fund (or just two of those listed above, about 93% of it in the LEGAL & GENERAL UT INTL INDEX TRUST I ACC and 7% of it in the DB X-TRACKERS FTSE 100 UCITS ETF).

u/throwaway1138 · 1 pointr/investing

I highly recommend The Bogleheads Guide to Investing and All About Asset Allocation to start with. They are both very understandable and you can read them in one weekend. It's your money and your life so it's worth it to spend a few bucks and an afternoon here and there to learn answers to questions you never even thought of asking before.

>at least half of American households have the majority of their networth in real estate.

Correct. Many/most Americans buy way too much house and are undiversified with a massive illiquid asset on their balance sheet. It costs them money and time to maintain while trapping them in one location and limits employment options. A healthy investment portfolio would have cash, bonds, stock, and some real estate.

Your original post asked specifically about real estate but I'm urging you to consider developing a long term workable plan beyond speculation and rental properties, which IMHO is shortsighted. You and your wife have a real shot at tremendous success because you are young DINKs with good income but you need to broaden your horizons a bit beyond the typical "let's buy real estate" idea.