Asset Allocation for Dummies

Use allocation strategies of the pros and protect your financial future

You don't have to be an investment expert to allocate your assets successfully. This plain-English guide demystifies the process, giving you timely advice on diversifying your investment portfolio to help insulate it against volatility. You'll see how to develop your personal investment strategy, avoid costly mistakes, and rebalance to generate extra return.

• The ABCs of asset allocation — discover how it works, why to do it, and the level of risk you're comfortable with

• Explore the different asset categories — from cash and bonds to stocks, mutual funds, exchange-traded funds, and more

• Plan your investment strategy — set your portfolio constraints, outline your financial goals, and select your asset classes

• Choose securities and accounts — select the best ones, understand fees and expenses, and take advantage of tax breaks

• Maintain your portfolio — keep tabs on your investments, know when to rebalance, and measure your results against appropriate market benchmarks

• Go beyond the basics — consider alternative investments (such as real estate and commodities), maximize after-tax results, and work with the pros when you need help

Open the book and find:

• The top asset allocation mistakes

• How to match the right investments with the right accounts

• Ways to successfully manage risk

• Best practices for portfolio rebalancing

• "What if?" investment scenarios

• Historical rates of return on ten asset classes and subclasses

• How to project your financial future

• Guidance for fine-tuning your long-term allocation plan