6 Easy Pieces Fundamentals of Asset Allocation Explained - Seeking Alpha

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by Patrick Rudden

Figuring out the best split for your assets often seems daunting. But it doesn't have to be. This template can help you get started.

In the classic book, Six Easy Pieces: Fundamentals of Physics Explained,Richard Feynman made some of the most challenging scientific ideas

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6 Easy Pieces: Fundamentals Of Asset Allocation Explained

Mar. 3, 2014 8:48 AM ET | 1 comment| by: AllianceBernstein

6 Easy Pieces: Fundamentals Of Asset Allocation Explained - Seeking Alpha http://seekingalpha.com/article/2062593-6-easy-pieces-fundamentals-of-asset-allocation-explai...

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Some investors might try to time the asset classes they invest in or, within the asset classes, which securities they buy. This is easier said than done.Skill in selecting assets is in short supply, so it's not available to everyone-and it comes at a cost. It's not a free lunch.

6.Know thyself

According to ancient Greek history,Know Thyselfwas carved into the forecourt of the Temple of Apollo in Delphi. The oft-quoted, oracular,two-time champion world poker player, Puggy Pearson, once said: "Only three things to gambling: knowing the 60/40 end of a proposition, moneymanagement and knowing yourself."The same goes for asset allocation. So ask whether you can afford to match your assets to your liabilities. Can

you afford not to? How much insight do you have into what will happen and are you invested accordingly? Self-knowledge is the ultimate key tosuccessful asset allocation.

Patrick Rudden is co-manager, Dynamic Diversif ied Portfolio at AllianceBernstein.

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bamaclgs, contributor

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After getting your liabilities (ex your home) to a 30 day status, follow Rule no. 4 and nothing else.4 Mar, 02:40 PMReplyLike0

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