Simply put, asset allocation involves spreading your money across different types of investments or “asset classes “. It’s how you divvy up your portfolio--whether you choose, cash, bonds or stocks or some other combination of asset categories. The idea is to figure out what is the right or “optimal” mix of asset classes to meet your investing objectives and risk tolerance. A key objective is to find investments that are not correlated. In other words, risk is theoretically reduced by having investments that don’t all move down at the same time to reduce risk. To keep your portfolio in ship-shape, you need to periodically revisit your asset allocation and rebalance your portfolio. In other words, buy and sell for the portfolio from time-to-time because various assets grow at different rates.
Tim Harrington is the Chairman and CEO of start-up eRollover.
Tim is a seasoned technology and consumer marketing entrepreneur. Among Tim’s accomplishments is the ecommerce company Fogdog Sports--a venture he led from inception through successful IPO and post-IPO merger.
We had the opportunity to speak with Tim before his presentation at the Finovate conference in San Francisco.
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Lorry Stensrud, a seasoned executive turned entrepreneur, is on the leading-edge of retirement income product development with his new Venture Achaean Financial.
Achaean’s Income Plus+ product provides a relatively high level of guaranteed starting income while maintaining both...
Jerry Golden--often referred to as the father of variable life insurance and variable annuities--has had a distinguished career as an innovator...
Francois Gadenne is the Chairman and Executive Director of the Retirement Income Industry Association (RIIA).
Formed in 2006, RIIA is bringing together the leading minds and resources in the relatively young retirement income industry. RIIA members include leading academics, banks, insurers, fund companies,...
Many financial advisors seem conditioned to wear...
