Comments on: A Discussion on Asset Allocation

By: 10 Ways to Screw Up Your Retirement

10 Ways to Screw Up Your Retirement — Thu, 01 Jan 1970 00:00:00 +0000

[...] their pros and cons. Be sure you have a good mix of all the asset classes that will give you the appropriate asset allocation that lines up with your risk tolerance and age. In addition to asset class, you want to avoid [...]

By: Aury (Thunderdrake)

Aury (Thunderdrake) — Thu, 01 Jan 1970 00:00:00 +0000

Ah! This is particularly interesting. The difference between asset allocation and diversification. There’s definitely a grey area there, but I think you did a fantastic job of bridging black from white.

I never really considered myself a diversified investor with the exception of stocks. So this helps give a bit of assurance on the definition!

By: Panda Mike

Panda Mike — Thu, 01 Jan 1970 00:00:00 +0000

I would also add that it is very important to know all the available asset classes.

For example, you can have several asset classes where you can invest your money and still stay in a “fixed income” asset category (such as gov bonds, corporate bonds, preferred shares, junk bonds, etc.).

Some are riskier than others, even in the fixed income.