EDU Articles
Learn about investing, trading, retirement, banking, personal finance and more.
How do I determine the right mix of assets?
Asset allocation tools and Monte Carlo simulators are available through broker-dealers and online services.
You may wish to construct your own asset allocation, but there are asset allocation programs available which can take a lot of the uncertainty out of the process. The most famous method for analyzing and testing an allocation involves the so-called Monte Carlo simulation.
This simulator helps you determine what would have happened with your portfolio if you were invested according to a particular mix of assets. Three main parameters you should consider for each asset class are: the asset’s historical performance, its volatility, and its correlation to other asset classes.
An investor would be wise to remember that the appropriate allocation will also depend on a person’s time horizon, risk tolerance, and objectives.
A Monte Carlo will crunch the numbers and show you which asset classes and regions you are gaining exposure to, among other things, but it will not lend much help with time horizon, income needs, tax considerations, and so forth.
What is an Asset Mix?
What are Some Strategies for Diversifying a Portfolio?
What is an FX swap?
A Foreign Exchange (FX) Swap is a short-term arrangement where a company or institution swaps domestic currency for another
Should I Trust an Article Such as “What Are The Best 10 Stocks For The Next 10 Years?”
Unlike short-term stock picks, these articles are concerned with growth that will go beyond the short term uptrend
How do I get exposure to other currencies?
There are two main ways to get exposure to other currencies: you can buy them in the open market (FOREX) or in ETFs
What is a Matching Contribution?
Employers can contribute to an employee’s 401(k) on a matching basis. Some employers will make additional contributions
What is Second-To-Die Life Insurance?
Second-to-die policies a.k.a. survivorship policies, are primarily used to provide a guaranteed legacy to their children
What is the Suitability Standard?
The suitability standard states that a broker-dealer is obliged to make recommendations that are suitable for their clients
How can I check if my portfolio is diversified?
With our Diversification Score® tool, an investor can input their portfolio holdings, and our A.I. will provide a score
What is a Profit?
In its simplest form, a profit is the revenue or income gained from an entity after all expenses/overhead is accounted
What is a Prospectus?
A Prospectus is a legal document that must be filed with the SEC when an investment is offered for sale to the public
What is Publication 504, Divorced and Separated individuals?
Divorce can be hard. Publication 504 walks through the various choices available to those who are divorced or separated