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Asset Allocation

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BUSINESS
By WERNER RENBERG and WERNER RENBERG,1994 Werner Renberg | January 23, 1994
Several readers have asked questions about asset allocation, such as:* "Just what is asset allocation?"* "Do you need to worry about asset allocation if you plan to be invested for many years?"* "An adviser told me I should be 40 percent in stock, 40 percent in bond, and 20 percent in money market funds. Since stocks perform the best over the long run, shouldn't I have more in stock funds?"Such questions are timely as well as important since this is the time of year when investors give -- or should give -- their mutual fund portfolios an annual review to see whether funds have been performing about as expected or whether changes are needed.
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NEWS
April 12, 2011
Investing for retirement would be quite straightforward if there were only one economic scenario to consider and its incumbent risks to manage, but that is not reality. This is the central problem with the recent column, "Questionable Investment Strategy in Maryland's pension plan" (op-ed, April 11), in which the author envisions one economic scenario for the state's pension system: recession. In reality, the system's Board of Trustees works to create an optimal, risk-adjusted asset allocation that considers both the plan's assets and liabilities, in the context of multiple risks and economic scenarios.
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BUSINESS
By JULIUS WESTHEIMER | April 26, 2000
Should you try to make a killing in one or two stocks or should you "play the field?" "Asset allocation -- not putting all of your money in a few stocks or a single category, but spreading it around -- helps you to reach your goals," says Financial Perspectives. "This also prevents you from gambling on who will be this year's winner. The results won't be spectacular, but the long-run ride will be smoother and more profitable." MAKES SENSE: "The good news is that the squeeze has been put on margin buyers as margin calls spread.
BUSINESS
By Eileen Ambrose, The Baltimore Sun | May 10, 2010
Within two hours of the Dow Jones industrial average plunging nearly 1,000 points Thursday, the call volume jumped about 40 percent at Baltimore's T. Rowe Price Associates. Anxious investors phoned to say, "The market is falling. I can't afford to let that happen," says Christine Fahlund, Price's senior financial planner. Callers were advised to hang tight. And Price representatives were instructed not to speculate on the cause of the plunge with clients because no one knew what was happening, she says.
BUSINESS
By ANDREW LECKEY | July 5, 1995
Asset allocation -- the investment buzzwords of the 1990s.An army of investment firms and professional advisers would love to be in charge of allocating your assets. This requires that you give them free rein to divide up a portion of your money in order to weather the vagaries of the modern financial world.It's a handy way for investors to avoid getting personally involved in the continual juggling of their holdings. But don't be misled into thinking all asset allocation delivers identical results.
BUSINESS
By Julius Westheimer | September 29, 1999
IN THIS volatile market, are you worried about your 40l(k) and other investments?"Every major study shows that asset allocation -- how your money is divided among stocks, bonds and money funds -- accounts for 90 percent of your long-term investment success," says Ted Benna, president of the 401(k) Association."In the weeks ahead, re-examine your mix. Aggressive investors should have 90 percent of their money in stocks, moderate investors 50 percent and conservative investors 20 percent. The balance should go into bonds, bond funds and money market funds."
BUSINESS
By Werner Renberg and Werner Renberg,Contributing Writer | November 8, 1992
One of your most important investment decisions allocating money among cash equivalents, bonds, and stocks.Just how you should allocate your assets depends on your investment objectives and tolerance for risk.For example, when you're younger and expect to be invested for many years -- while markets fluctuate but your pay goes up -- you may be able to afford higher risks while shooting for higher returns.To accommodate people with different risk/return targets, Fidelity has created three no-load asset allocation funds with different investment objectives: Fidelity Asset Manager, started in December 1988 to seek high total return with reduced risk; Fidelity Asset Manager: Growth, started last December to seek high total return more aggressively, and Fidelity Asset Manager: Income, launched last month, to generate income.
BUSINESS
By Andrew Leckey and Andrew Leckey,Tribune Media Services | May 19, 1993
Here: You do it.That's what millions of American investors are saying as they throw up their hands in consternation over market, economic and taxation worries.So they let professionals divide up their investment pot for them, making the decisions that seem to grow harder each day.Asset allocation funds are the buzz term in this uniquely 1990s process. Such funds permit portfolio managers greater autonomy in selecting the proportion of stocks, bonds and money-market instruments than the traditional balanced fund has allowed.
BUSINESS
By KNIGHT RIDDER/TRIBUNE | September 21, 2003
Diversify, diversify, diversify has long been a Wall Street mantra. A key strategy called asset allocation helps achieve this investment goal. A person's hard-earned financial savings are distributed among a variety of investment options, such as bonds, equities and mutual funds. This approach helps reduce exposure to risk and the chances of a financial meltdown. How does asset allocation work? Here is a quick list of Web sites with useful details on asset allocation: Bankrate.com www.bankrate.
BUSINESS
By MORNINGSTAR | October 10, 1999
Vanguard Asset Allocation Fund is one of the best, but it works very hard for its high status.This isn't one of those hybrid funds that stand pat with set asset allocations. Many of those vehicles that heavily overweight stocks have been phenomenally successful in recent years. This fund, on the other hand, has exerted quite a lot of effort for its excellent returns.Day-to-day manager Thomas Loeb has undeniably been helped along by the fund's S&P 500 indexed stock portfolio and its Lehman Brothers Long-Term Treasury index bond stake.
BUSINESS
By McClatchy-Tribune | May 19, 2009
DALLAS -- Are target-date mutual funds missing the bull's-eye? It appears the answer is yes for many of these funds, which are designed to smooth a worker's path to retirement by automatically resetting the investments as the investor ages. Typically, a target-date fund changes its asset allocation to become less risky as the investor nears retirement. But because there are crucial differences in the funds' asset allocation, some of the more aggressive have racked up big losses in the recent bear market and have drawn the attention of regulators and lawmakers.
BUSINESS
By EILEEN AMBROSE | July 15, 2008
It's official. We're in a bear market. Now what? If you have done all those boring things that financial planners nag about, like making sure you have a diversified portfolio, you should be in good shape to weather the downturn. You might even be in a position to snap up bargains in the stock market while prices remain low. But if all your money is tied up in a narrow selection of stocks, you may be in for one of those hard lessons that bear markets deliver. A bear market is generally defined as a 20 percent decline from the most recent market high.
BUSINESS
By Janet Kidd Stewart and Janet Kidd Stewart,Tribune Media Services | June 29, 2008
From 50,000 feet, your retirement doesn't look so good. Bearish financial markets, gloomy long-term projections for stocks, a sputtering economy - and that's just the big picture. Down at eye level - where you actually have some control over your finances - things aren't much better with milk and gasoline at $4 a gallon. But making the most of what you can control about your retirement finances can make a substantial impact, experts say. "Investors have at least four levers: how much they withdraw, how they allocate their portfolio, when they actually begin retirement and when they start taking Social Security," said Christine Fahlund, senior financial planner for T. Rowe Price Group.
BUSINESS
By Hanah Cho and Hanah Cho,Sun reporter | June 25, 2008
Investors are pouring billions of dollars into target-date mutual funds, and Baltimore's Legg Mason Inc. wants a piece of that budding market. Legg plans to launch its life-cycle funds in August, joining a litany of other firms trying to capture a flow of money that has increased 50 percent annually in the past several years, according to mutual fund tracker Lipper Inc. Assets in these mutual funds are managed based on specific retirement years like...
BUSINESS
By EILEEN AMBROSE | May 27, 2008
The development of retirement target-date funds has been a blessing to all of us who don't want to make investment decisions or adjust our portfolios on a regular basis. All you have to do is choose a single fund based on the year you expect to retire, like 2020 or 2050. The fund does the rest. It makes the investment decisions for you, putting more of your money into stocks when you are young and can afford risk and gradually shifts more into bonds the closer you get to retirement.
BUSINESS
By Janet Kidd Stewart and Janet Kidd Stewart,Tribune Media Services | March 2, 2008
Even when stocks and the economy are humming along nicely, it's tough to convince our primitive instincts that we should sacrifice today to save for the future. So it should come as little surprise that retirement saving is taking a back seat to other issues in the economic downturn and housing slump. Retirement savings ranked as a lower priority than keeping up with monthly expenses for the first time since 2004, according to the Mercer Workplace Survey released in December. Another study, released by Transamerica Center for Retirement Studies, found that just 59 percent of workers claimed to be "very" or "somewhat" confident in a comfortable retirement, down from 75 percent a year earlier.
BUSINESS
By HUMBERTO CRUZ and HUMBERTO CRUZ,TRIBUNE MEDIA SERVICES | November 13, 2005
Judging by the multitude of "risk tolerance" or "investor risk profile" questionnaires I have filled out lately, I should invest in a "balanced" portfolio of about 60 percent stocks and 40 percent fixed income. But there is no way I am going to do that, not now. Although I am risk-averse, 60 years old and semiretired, the questionnaires steer me toward a stock-dominated portfolio. That's largely because I tend to hold my investments for the long term and supplement my investment income with freelance writing.
BUSINESS
By Humberto Cruz and Humberto Cruz,Tribune Media Services | May 27, 2007
The next time I'm tempted to pontificate about asset allocation, diversification and rebalancing, I'd better explain what I mean. I have made this resolve after perusing the latest in a series of investor-knowledge surveys by American Century Investments. For years, the company's highly focused surveys have consistently exposed a basic lack of understanding of investment terms and concepts by the U.S. public. Most recently, a 10-question survey given to more than 680 Americans ages 18 to 41 found fewer than half understand the fundamental benefits of a well-diversified investment portfolio.
BUSINESS
By CHARLES JAFFE | November 6, 2007
En route to an 8-0 start, the New England Patriots scored points in remarkable bunches, and kept putting points on the board when the games were out of reach. Whether it was sports-talk radio, the post office, at school or just about anywhere, seemingly everyone was trying to define "running it up." In the middle of all of the discussions, it dawned on me that investors love running up the score, and don't recognize the problems it sometimes creates. In sports and investing, my definition of running up the score has less to do with points than attitude.
BUSINESS
By JANET KIDD STEWART | September 9, 2007
When it comes to retirement saving, is easier better? Investors are pouring money into target-date retirement funds, which key their asset allocation off a particular retirement date. In 2006, about $114 billion was invested in those funds, according to the Investment Company Institute, a 60 percent increase from the year before. Workplace retirement plans and individual investors are flocking to the funds because of their simplicity. Typically, they invest in underlying stock and bond mutual funds that are allocated to correspond with an investor's age. So a 2030 fund, for example, might contain a majority of stocks that would be appropriate for an investor in her 40s. But the investments automatically grow more conservative as she nears retirement age. Sounds easy enough.
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