Tags |
|
|
Links |
|
|
Casual Articles - Allocating Your Assets To Good Use
Anybody that has tried using Google Adwords to drive traffic to one of their sites know that it is very easy to lose money on campaigns. This is particularly true if your site is in a niche with a lot of competition or has a lot of big players. There are some techniques, however, that can ensure your Adwords campaigns will be successful and profitable.The first thing you must keep in mind w
What are your financial goals? For example, if you believe in frugal approach to life and give a thumbs up to "Simple living, High thinking", you don't need to set very high goals with your money. In the other case, you may have to align the allocation to your goals.
When do you need the money? Is it for the car you want to buy in another 2-3 years? Or is it for the dream house 10 years from now? Ask yourse
There are 7 simple steps to help you save up to 25 cents per gallon or more on gas purchases using gas rebate credit cards.1) Know the rebate percent. It sounds simple but some cards give a 10% rebate and others only give a 3% rebate on gas purchases. Most cards give a 1% rebate on non-gas purchases. You should pick the card that pays out the highest rebate.2) Know the limits of t
But seriously, asset allocation is a useful concept to know. And it's very simple too. Once you get your fundamentals clear about AA, you can use it to your advantage. It is the first step of adding value to your money or putting your money to good use.
Asset allocation is the percentage distribution of your money into equity, debt and liquid instruments. Equity, as you know, gives the highest growth but comes with the highest risk. Debt instruments are more or less guaranteed but give you a lesser return. Liquid money is your money in your savings account.
Let’s start with the thumb rule of AA. Your allocation to debt should be equal to your age. And as you age, the percentage in debt should increase too. In other words, your investments in equity should be (100 - your age).
But AA should be much more dynamic than the above thumb rule. I feel that it should depend on your age and your risk appetite. Guys at 20-25 years of age may want to invest everything into equities and I think that is the right strategy.
And before you set off to do some AA for yourself, I would like you to ask the following questions to yourself:
What is your risk appetite? I mean if you are jittery with the slightest tremor in the stock market, you better be away from the stock market. Even though, stocks give the best returns on a longer run.
What are your financial goals? For example, if you believe in frugal approach to life and give a thumbs up to "Simple living, High thinking", you don't need to set very high goals with your money. In the other case, you may have to align the allocation to your goals.
When do you need the money? Is it for the car you want to buy in another 2-3 years? Or is it for the dream house 10 years from now? Ask yoursel
So you want to learn currency exchange huh?You heard about it and now you decided you want to become the Donald Trump of investing, somehow you know you can pull this off and become the next big thing.Well it's quite possible to earn a very good living doing exchanges, but you have to know how the system works before you start seeing the money.One system that is one of the int
Asset allocation is the percentage distribution of your money into equity, debt and liquid instruments. Equity, as you know, gives the highest growth but comes with the highest risk. Debt instruments are more or less guaranteed but give you a lesser return. Liquid money is your money in your savings account.
Let’s start with the thumb rule of AA. Your allocation to debt should be equal to your age. And as you age, the percentage in debt should increase too. In other words, your investments in equity should be (100 - your age).
But AA should be much more dynamic than the above thumb rule. I feel that it should depend on your age and your risk appetite. Guys at 20-25 years of age may want to invest everything into equities and I think that is the right strategy.
And before you set off to do some AA for yourself, I would like you to ask the following questions to yourself:
What is your risk appetite? I mean if you are jittery with the slightest tremor in the stock market, you better be away from the stock market. Even though, stocks give the best returns on a longer run.
What are your financial goals? For example, if you believe in frugal approach to life and give a thumbs up to "Simple living, High thinking", you don't need to set very high goals with your money. In the other case, you may have to align the allocation to your goals.
When do you need the money? Is it for the car you want to buy in another 2-3 years? Or is it for the dream house 10 years from now? Ask yourse
Customer Lifetime Value (CLV) can get a little tricky, but I’ll try to make it simple. By now you’ve probably heard the term yet may not fully understand how to use it effectively, if at all. That’s because every “Tom, Dick and Mary Marketer” have done their best to make it more complicated than necessary.The hardest part of calculating CLV is figuring out exactly what your customers’ “l
Let’s start with the thumb rule of AA. Your allocation to debt should be equal to your age. And as you age, the percentage in debt should increase too. In other words, your investments in equity should be (100 - your age).
But AA should be much more dynamic than the above thumb rule. I feel that it should depend on your age and your risk appetite. Guys at 20-25 years of age may want to invest everything into equities and I think that is the right strategy.
And before you set off to do some AA for yourself, I would like you to ask the following questions to yourself:
What is your risk appetite? I mean if you are jittery with the slightest tremor in the stock market, you better be away from the stock market. Even though, stocks give the best returns on a longer run.
What are your financial goals? For example, if you believe in frugal approach to life and give a thumbs up to "Simple living, High thinking", you don't need to set very high goals with your money. In the other case, you may have to align the allocation to your goals.
When do you need the money? Is it for the car you want to buy in another 2-3 years? Or is it for the dream house 10 years from now? Ask yourse
Images add pizzazz to your web site. You can make a web site more visually appealing and support your web content by providing a visual representation of your product.Images also communicate a message. They can trigger feelings and emotions. Carefully selected, quality images that accurately support your sales copy will help to produce a positive response in your web visitors. More importan
And before you set off to do some AA for yourself, I would like you to ask the following questions to yourself:
What is your risk appetite? I mean if you are jittery with the slightest tremor in the stock market, you better be away from the stock market. Even though, stocks give the best returns on a longer run.
What are your financial goals? For example, if you believe in frugal approach to life and give a thumbs up to "Simple living, High thinking", you don't need to set very high goals with your money. In the other case, you may have to align the allocation to your goals.
When do you need the money? Is it for the car you want to buy in another 2-3 years? Or is it for the dream house 10 years from now? Ask yourse
One of the things that you will need to know before doing any internet business is to know the true facts and statistics. I know the facts from Armand Morin when I am attending one of his seminars.The 1st fact that you have to know is that there are around 8000 people who start new internet business every single day. The number of internet user is increasing at a very fast rate. There are m
What are your financial goals? For example, if you believe in frugal approach to life and give a thumbs up to "Simple living, High thinking", you don't need to set very high goals with your money. In the other case, you may have to align the allocation to your goals.
When do you need the money? Is it for the car you want to buy in another 2-3 years? Or is it for the dream house 10 years from now? Ask yourself and then decide your asset allocation.
And if you love ready made formulas, here's some allocation strategies from John Bogle:
Older investor in distribution phase: 50% equity; 50% debt
Young investor in distribution phase: 60% equity; 40% debt
Older investor in accumulation phase: 70% equity; 30% debt
Young investor in accumulation phase: 80% equity; 20% debt
The accumulation phase means the period when you have no use for the money and are focussed on building it on. In the distribution phase, you are also using your assets for your goals.
All said and done, AA can contribute to your financial prosperity in a big way. Studies have pointed out that the asset allocation decision is more important than the process of choosing the actual stocks, funds and even market timing.
In other words, if you just replace active picks with simple asset allocation decisions, it will work just as well as, if not even better than, professional fund managers. Do your allocations now
HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.casualarticles.com/article/101708/casualarticles-Allocating-Your-Assets-To-Good-Use.html">Allocating Your Assets To Good Use</a>
BB link (for phorums):
[url=http://www.casualarticles.com/article/101708/casualarticles-Allocating-Your-Assets-To-Good-Use.html]Allocating Your Assets To Good Use[/url]
Related Articles:
How To Get A WordPress API Key For The Akismet WordPress Plugin
Forex Trading - Fibonacci (or How to Tell Where the Price Will Bounce)
Bookmark it:
|