Newsletter Archive

Marotta On Money - May 14 Newsletter

Asset Allocation

Marotta's 2012 Gone-Fishing Portfolio (05-14-2012)

A gone-fishing portfolio has a limited number of investments with a balanced asset allocation that should do well with dampened volatility. Its primary appeal is simplicity. As a secondary virtue, it avoids the worst mistakes of the financial services industry. This year I limited myself to 12 investment vehicles. Asset allocation begins by selecting the top six asset categories. A good starting point is an age-appropriate allocation. We use as our example a couple both born in 1972 and turning 40 this year. The most popular names of that era were Michael and Jennifer.
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Upcoming Events

05/25

Virginia's Sales Tax Holiday: Hurricane and Emergency Preparedness Equipment.

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05/27

Memorial Day

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In The News

George & David Marotta Featured in Reuters Article on Grandparents and Finances

George Marotta was featured in an article in Reuters on how grandparents can have a large positive impact on children and grandchildren, with specific examples of ways finances can bring families together.

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Featured Video

Video: Roth IRAs Make Great Estate Planning Tools

Investment Strategies Part 3: Rebalance Regularly Between Asset Classes and Subcategories (06-08-2009)

The investment metric correlation helps you continually take your gains off the table for safe spending. And it helps you determine what constitutes an asset class and which subcategories to consider for further diversification. Once these categories are defined, correlation can also reveal how much of a bonus to expect from your returns when you rebalance between two categories. In his 1996 article "The Rebalancing Bonus" William J. Bernstein presented a brilliant formula to approximate the extra return you can expect by rebalancing your portfolio regularly. We rarely focus on a formula in this column.
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