PART 10: War of the World Stocks
Now that you have your overall allocation of stocks to bonds established (and if you don’t, please go back and see Part 9 on asset allocation), the next step is to determine how much of your stocks allocation will be given to international stocks. At first glance, this seems like…
PART 9: You Bet Your Asset Allocation
If I were to ask you to name the factors that could impact—or even upend—your investment plan, what would you say? Would you point to current events (natural disasters, wars, elections)? Inflation? Government legislation? Interest rates? If so, you wouldn’t be wrong. None of these answers are off-base—and all of…
PART 8: Mutual Funds vs ETFs
Ah, the age-old question. If there’s a bigger rivalry in the entire investing landscape, I don’t know of it. Here’s the deal. When we refer to index funds, it’s important to know that technically, this can mean one of two things: a mutual fund or an exchange-traded fund (ETF). Said…
PART 7: The Three-Fund Portfolio
At its core, an index investing strategy is both very simple and very effective. One of the best index portfolio models that I have come across—and the one that I myself follow—is called the “three-fund portfolio.” The architect of this portfolio is investor, author, and chief Boglehead Taylor Larimore. (If…