If you missed David Swensen on NPR this morning, you can catch it using this link. Near the top of the page, click on “Listen Now.”
http://www.npr.org/templates/story/story.php?storyId=6203264
Examine the asset allocation pie chart on the NPR page. Notice Swensen advocates a more conservative breakdown of assets compared to the AA-Mosaic Portfolio. As he points out in the interview, there is no one perfect allocation that fits all investors.
Here is an addition reference with specific index funds and ETFs identified to match Swensen’s asset allocation recommendations.
Premium subscription available for $5.00 per month through December 31, 2009
Photograph: End of pew in the RAF Chapel, London, England
Sphere: Related Content
What headway are you making with your Investment Policy? As you develop your investment program, here are a few questions to consider.
- What investments do I have at this time?
- What percentage is in stocks, bonds, and cash?
- What are my cash flow needs?
- Do I require income or is it possible to keep my investments in place for five or more years?
- What is my tolerance for risk?
- If you are not sure how to answer this question, I suggest you take the Risk Capacity questionnaire available at this web site.
- What asset classes do I want to include in my portfolio?
- What percentage of my total holdings are committed to each asset class?
- What constraints or limits do I want to place on each asset class.
- In other words, what upper and lower percentage limits will I permit for each asset class. We use +/- 30% for the AA-Mosaic Portfolio.
Consider the above questions as you develop your Investment Policy. It is very important to have a plan of action.
Photograph: American tourist with London bobbies.
Sphere: Related Content
