The Dividend Guy Blog

Unconventional Lifestyle and Dividend Growth Strategy

Asset Allocation

Returns of Growth Versus Value Stocks

Asset Allocation, Stock Selection

In a recent post I did on my updated asset allocation, I showed that I added some value asset targets. I currently have both growth and value stocks in my dividend portfolio, however I felt that I needed to have a target that would provide the best diversification and something that I could track. In particular, I wanted to ensure I had a value target because value has been a very strong performer in the equity markets since very early days. In a report prepared by Al Frank Asset …

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Enhancing My Asset Allocation

Asset Allocation

I have been doing a lot of thinking recently about asset allocation and subsequently a great deal of research and investigation into what makes up a good asset allocation model for a portfolio. During this research, I consistently kept a couple of things in the back of mind with respect to my own personal portfolio and what I want to achieve with it. The consistent themes included the following: 1. I have 20+ years before I will use the portfolio for retirement purposes - for those of …

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The Yale Endowment Fund Asset Allocation

Asset Allocation

I find that I am talking a lot about asset allocations these days - the reason is simple. Asset allocation is how investors can manage risk, reduce the volatility in their portfolios, and above all else, is what drives the majority of the returns in a portfolio. Consider the following statement from the folks over at Merriman Berkman Next (Sound Investing Podcast): Dimensional Fund Advisors studied the returns of 44 institutional pension funds with about $450 billion in assets over various …

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Pension Fund Asset Allocations You Can Use

Asset Allocation

If you are trying to figure out an asset allocation to use in your own portfolio, pension funds are good places to look for ideas. In fact, some experts suggest that individual investors would be wise to follow the lead of the pension plans. The reasons are pretty simple if you think about it. First, pension plans are invested for the best balance between risk and reward. The cannot be too risk adverse, or they run the risk of not being able to meet the future withdrawal requirements of …

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The 3 Things That Will Make You Better Than 99% of Investors

Asset Allocation, Principles

Want to know the three things that will make you better than 99% of the investing population? It is not rocket science nor does is it require you to do anything out the ordinary. Here they are: 1. Start Investing Today The sooner you can start investing the better. Don't worry if you think you are too old or too young, the key is to start investing today. The reason for this is to allow compounding to work right away. Here is an graphic from H&R Block that explains compounding (a …

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Real Estate As An Asset Class

Asset Allocation

I was speaking with a friend of mine the other day about asset classes, and the topic of real estate as an asset class came up. We were under the impression that there are really two ways to hold real estate:Investing in Real Estate Investment Trusts (REITs) that purchase and hold real estate investments; orInvesting in actual real estate (houses, buildings, land)If you look at my portfolio, I could argue that I hold real estate. My iUnits REIT fund holds a number of real estate investments. …

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