PUT SOME OF YOUR INVESTMENTS ON AUTOPILOT THE TARGET-DATE FUND APPROACH: > Rebalance between stocks and bonds > Buy when prices drop > Sell when prices rise Takes the emotion out of investing
Action Point
CONSIDER QUANTS
CONSIDER QUANTS Consider adding mutual funds run by reputable and leading edge quantitative research and strategy firms. Two masters of the art: – Cliff Asness of AQR Capital Management – Andrew Lo of MIT and AlphaSimplex Group
AVOID INVESTMENT LOSSES
AVOID INVESTMENT LOSSES Avoid Investment Losses Rules: – Buy quality companies selling at deep discounts – Invest with shareholder friendly managers – Keep some insurance in the form of cash and gold for portfolio protection
DON’T BE AFRAID TO INVEST IN YOURSELF
You are the best investment you can make!
DON’T ABANDON YOUR ENTIRE PORTFOLIO OF U.S. TREASURIES OR BONDS!
Review your bond positions – make sure they meet your income and diversification goals Bonds provide: – Diversification – Income – Stability over time U.S. Treasuries provide: – Liquidity – Guaranteed income – Guaranteed return of principal at maturity – A non-correlated asset
CONSIDER ADDING SOME INTERNATIONAL REAL ESTATE TO YOUR PORTFOLIO
CONSIDER ADDING SOME INTERNATIONAL REAL ESTATE TO YOUR PORTFOLIO – Offers value, appreciation, and diversification opportunities – Best In Class Global Real Estate Funds – Value-oriented: Third Avenue Real Estate Value Fund (TVRVX) – Growth- oriented: Baron Real Estate Fund (BREFX)
