![]() There are an endless number of approaches to asset allocation. Indeed, Thomas Idzorek summed up the studies by Roger Ibbotson and Morningstar, stating in a 2010 article, titled “Asset Allocation Is King,” that, “in aggregate, 100% of the return levels come from asset allocation.” A 1986 study by Gary Brinson is often misinterpreted, but the message is correct - investors need to pay attention to asset allocation. Finally, they may also have alternative-asset classes such as real estate, commodities, and private equity.Īdding complexity allows investors to add additional diversification to their portfolio, which may decrease the total risk of their investments.įor most people who are wisely trying not to time the market, widely quoted studies indicate that asset allocation is the most important decision investors make. and international stock-asset classes and separate large- and small-company stock-asset classes. For example, many investors will have separate U.S. Investors may add complexity to the asset-allocation decision by adding additional asset classes or by breaking asset classes into subsets. Therefore, most investors would choose to diversify their investments with bonds which have historically provided less return (about 4.9% annual rate of return from 1928 to 2013), but with much less volatility. Most investors would want to protect themselves against that potential volatility, especially if they are in or near retirement. But, as we know, stocks are also volatile and may at times lose value. Stocks help an investment account grow over time and have averaged a 9.6% annual rate of return from 1928 to 2013 as measured by the S&P 500. With the run-up in stock prices, now is a good time to evaluate your existing asset allocation.Īt its simplest, asset allocation can be seen as the mix of stocks (partial ownership of companies) and bonds (a loan to be repaid at a specific time and interest rate). The appropriate asset allocation for you will depend on your goals, risk tolerance, and investment time horizon. ![]() Asset allocation helps investors maximize returns while minimizing risks by utilizing diversification as a strategy for managing different market conditions. But with high returns also comes the risk of volatility. With the S&P 500 stock index returning 31.9% in 2013, there is renewed interest by individual investors to invest in stocks. ![]() The second most important decision is your asset allocation. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.Doug WheatThe most important investing decision for individual investors is how much to save from your paycheck. Dont miss the 360 VR Matterport Tour!Ĭopyright © 2021 Big Sky Country MLS. 20 min to Bridger Bowl, 5 min to downtown Bozeman dining + shopping. Neighborhood trails link to parks, town to M trail, golf course + Story Mill park. Separate 1 bed guest quarters w/ kitchen. 2 more bed suites w/ large flex/bonus room on 2nd. Vaulted primary suite on main w/ deluxe bath. Soaring 16 ceilings in living room w/ 42 fireplace. Legends realty land for sale storymill windows#Pella windows fill the rooms w/ natural light. So many luxury level finishes - solid surface wood/tile flooring, Thermador appliances, quartz counters, gorgeous cabinetry package. ![]() Modern contemporary style w/ open design. 4000+ sq ft main house, guest quarters + two 2-car garages. Primo 1/3 acre lot backs to park space/trail system w/ mountain views. ![]() Amazing new construction custom home w/ guest quarters in Legends! Architecturally designed by Black Mountain & built by Cold Smoke. ![]()
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