Focus on asset allocation from "summary" of The Bogleheads' Guide to Investing by Taylor Larimore,Mel Lindauer,Michael LeBoeuf
Asset allocation is the most important decision that investors will make. It is not about picking the right stock or mutual fund, but rather about deciding how to divide your investment dollars among different asset classes. Asset allocation is crucial because it determines the overall risk and return of your investment portfolio. One of the key principles of asset allocation is simplicity. It is better to keep your investment portfolio simple and easy to understand. This means not overcomplicating things with too many different asset classes or investments. By keeping it simple, you can focus on the big picture and avoid getting bogged down in the details. Clarity is also important when it comes to asset allocation. You should have a clear understanding of why you are investing in a particular asset class and how it fits into your overall investment strategy. This will help you make informed decisions and avoid making emotional or impulsive choices. Logical sequencing is another important aspect of asset allocation. You should have a logical plan for how you will allocate your assets based on your investment goals, time horizon, and risk tolerance. This will help you stay disciplined and avoid making hasty decisions based on short-term market fluctuations. Transition words and phrases can help guide the reader through the different aspects of asset allocation. For exa...
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