Automated Tool Aligns Your Investment Risk Tolerance and Asset Allocation

By The Skilled Investor, June 9, 2007, 10:57 am
.
.

Check out this automated tool for aligning your investment risk tolerance and asset allocation - A Tip from The Skilled Investor

Your tolerance for investment risk is a relative thing. Few people like investment risk, but some can handle it better than others can. The more investment risk you are willing to tolerate, the higher your potential expected investment returns and investment growth. At the same time, the investment road you take might be rougher.

Securities markets tend to pay a return on investment only for shouldering investment risks at the market level. The cash, bond, and stock financial asset classes have different expected risk and return characteristics.

Financial asset allocation is the apportionment of your investment portfolio into one or more of these classes of market-traded financial assets. How you allocate major portions of your assets among the primary financial asset classes determines your portfolio’s overall exposure to investment risk and thus your potential for investment growth. (See related articles from The Skilled Investor in these categories: Returns and Risk Premiums, Asset Allocation and Risk Tolerance, and Securities Valuation)

The VeriPlan personal financial planning software provides a fully automated and integrated asset allocation tool with five user selectable and adjustable asset allocation methods. Each of these asset allocation methods provides automatic annual portfolio rebalancing across your lifetime.

VeriPlan’s five asset allocation methods give you unprecedented flexibility in your personal financial planning. VeriPlan allows you to analyze a wide variety of asset allocation strategies across your lifetime. It enables you to choose the one that matches your preferences for investment risk and return on investment. Within the context of your particular financial circumstances, VeriPlan can give you a much better understanding of the interplay between investment risk and investment growth projected over your lifetime.

.
.
Bookmark on Your Favorite Service: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • StumbleUpon
  • Technorati
  • Digg
  • del.icio.us
  • Netscape
  • Reddit
  • YahooMyWeb
  • SphereIt
  • Furl
  • LinkaGoGo
  • Ma.gnolia
  • MisterWong
  • Netvouz
  • Simpy
Tags: , , , , , , , , , , ,
.

If you like this article, please consider subscribing to our full text RSS feed. You can also subscribe via email, and new posts will be sent directly to your inbox.

.
READERS FAVORITES: Our Top 30 Articles for You to Read

  • Default under the Citibank Credit Card Contract
  • The Top 25 Best Low Cost US Money Market Funds
  • The Optimal Investment Strategy for Individual Investors
  • 10 Lower Cost S and P 500 Index Mutual Funds
  • Publish your blog news articles on traditional media center and newspaper websites
  • Traditional IRA and 401k Versus Roth IRA and Roth 401k Contributions
  • Factors Favoring Roth IRA and Roth 401k Plan Contributions
  • Rational Mutual Fund and ETF Selection
  • How unstable have stock market returns been over time?
  • Factors Favoring Roth IRA and Roth 401k Plan Contributions - Part 2
  • Screening Index Mutual Funds with IndexUniverse.com
  • American Funds - The Investment Company of America - Class A Shares (AIVSX) net a +3 Fund Authority Score
  • Analyze Multiple Personal Financial Planning Decisions Simultaneously with VeriPlan
  • American Funds - Washington Mutual Investors Fund - Class A Shares (AWSHX) acquire a +2 Fund Authority Score
  • Avoid High Turnover Mutual Funds and Active ETF Trading
  • Own Investment Mutual Funds and ETFs - Not Individual Securities
  • Financial Industry Product Development and Your Best Interests
  • Objective Personal Finance Answers Are Hard to Find
  • The Financial Services Industry is Still the Largest S&P 500 Sector - Even after the Collapse of its Stock Values
  • Mutual Fund and ETF Screening Requirements
  • Develop Your Own Personal Financial Planning Skills - Step 1 of 10 Financial Planning Steps in the Right Direction
  • Always Completely Diversify Your Investment Portfolio
  • Most Individual Investors Are Poor Personal Portfolio Managers
  • Excessive Investment Expenses Take 2% of Individual Investor Assets Every Year
  • Rational Mutual Fund and ETF Screening Rules
  • Make More Optimal Tradeoffs Between Investment Risk and Return
  • Fee-Only Compensation Aligns the Interests of Clients and their Financial Advisors
  • Where's Waldo? - The illusion of superior professional mutual fund manager performance.
  • Choose Lower Mutual Fund and ETF Management Fees
  • March 5 2007 Edition of the Festival of Stocks
    • .
    Article comments

    Add your own comment or set a trackback

    COMMENT POLICY:

    We appreciate anyone who takes the time to leave a legitimate comment. We accept comments that thoughtfully address the substance of an article. All comments are moderated before they appear. All spam gets trashed.

    Currently 1 comment
    Add your own comment



    Follow comments according to this article through a RSS 2.0 feed

    « The Kind of Financial Advisor You Need
    Commodity Futures in Your Investment Portfolio »
    Article comments

    NOTICE: YOU MUST AGREE TO THE TERMS OF USE TO USE THIS WEBSITE.

    These links will take you to our Terms of Use, our Privacy Policy and our Copyright Policy.

    This site is solely for informational and educational purposes related to your personal, private, and non-commercial use.

    • In no way does this site constitute or provide investment advice under the laws and regulations of the United States of America and its various States or of any other country in the world.
    • This site does not collect any specific information on the investment situation of any reader.
    • This site does not render any advice on the basis of any readers' specific investment situation in accordance with the Investment Advisers Act of 1940, as amended.
    • In no way does this site constitute a solicitation or offer to sell securities of any kind.

    Copyright 2008 - Lawrence Russell and Company, All rights reserved worldwide.

    This site is financial publication of general and regular circulation. Except for reading and browsing via the World Wide Web, no part of this document or website may be reproduced, modified, disseminated, published, adapted in any manner or transferred without permission in writing from Lawrence Russell and Company.

    THERE ARE NO WARRANTIES, EXPRESSED OR IMPLIED, FOR THIS WEBSITE, INCLUDING NO WARRANTY FOR MERCHANTABILITY AND NO WARRANTY FOR FITNESS FOR ANY PARTICULAR PURPOSE.

    Unless otherwise stated, there are no business arrangements of any kind between The Skilled Investor and any mutual fund, ETF, or other investment security or any company that may be featured in our articles. We do not accept any payments to influence what we write about or what we say. The Skilled Investor does allow advertisers to post their messages on our site, and it is entirely your choice whether or not to patronize any of these advertisers.

    "The Skilled Investor", "Skilled Investor", "Fund Authority," "Fund Authority Score," "VeriPlan", "Personal Finance Software for Your Lifetime", "Your Personal Financial Lifecycle Planner", and "Sensible and Scientific Financial and Investment Planning" are some of the trademarks of Lawrence Russell and Company. Other trademarks and service marks are the properties of their respective owners.

    Visit Our Objective Family Finance Blogs