Re: Asset Allocation

From: "L. Chen" <am302@Freenet.Buffalo.EDU>
Subject: Re: Asset Allocation
Date: Wed, 7 Oct 1998 00:01:39 -0400 (EDT)

Next Article (by Date): re: asset allocation Randy Barnes
Previous Article (by Date): Re: Roth IRA conversion Rich Carreiro
Top of Thread: Re: Asset Allocation Rich Carreiro
Articles sorted by: [Date] [Author] [Subject]

> 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.

You don't do asset allocation within the IRA; but on your overall investment
portfolio -- both IRA and conventional investments.

Chen



- -

Go to Jeff Salisbury LWGate Home Page.