Go to Jeff Salisbury LWGate Home Page.From: "Peter & Karen Diamond" <diamond@vsi.net>
Subject: Asset Allocation
Date: Sat, 3 Oct 1998 16:13:33 -0400
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Hello everyone, I am in the process of picking an investment for a new IRA and have been thinking about asset allocations. The premise of a balanced portfolio of various asset classes and investments makes sense in principle. On the other hand I can't exactly see the problem with picking the best performing asset class and sticking with that one. For example, many people would add an international, small cap or bond investment class to a portfolio. This would balance out the returns since those investments would be doing well when your large cap investments are doing poorly. But if those investments will produce an overall lower return based on their historical averages, what is the point? I really don't care how the portfolio performs year to year. When you are talking about retirement savings and IRAs specifically, what I really want is the most money in the account in the end. Since you shouldn't be taping into it, who cares how you got there? I have at least 30 years for the money to grow and putting some of it into an underperforming asset can really hurt in the long run. Just a thought. I was wondering if anyone else has thought about the asset allocation issue this way. Thanks Peter - -
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