Jul 31 2009
How Do You Select the “Correct” Portfolio?
How does one select or create the “correct” portfolio? Here are two suggestions and these are particularly important for beginning investors.
1) Go to http://www.ifa.com and take the Risk Capacity Survey. This survey will recommend one of twenty asset allocation plans. Most investors will find they land somewhere between portfolio #30 (on the conservative side) to portfolio #70 (somewhat to the aggressive side). Few will find themselves either at the extreme conservative side with portfolio #5, or over on the most aggressive side at portfolio #100.
2) A second source is to go to AssetBuilder and you will find the link under Blogrolls on the right-hand edge of this blog. Check out the different portfolios and see how the asset allocation plans fit your ability to handle risk.
Over the next few weeks sample portfolios will be posted here, but most of the detailed work will be presented over on Premium Content.
Photograph: Part of the old section of Southampton, England
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