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At the highest level, Asset Allocation refers to an investor’s decision of what percentage to allocate to stocks, versus bonds, versus cash (and cash equivalents), versus any other asset class (commodities, alternatives, real estate, etc…).
It is believed that the asset allocation decision is responsible for the majority of an investor’s returns. In other words, there is a direct correlation between an investor’s long-term return and how long - and to what percent - they owned stocks over their lifetime.
The longer you own stocks and the larger a percentage of your total portfolio stocks are, the better your long-term return (historically).
What is the Role of Asset Allocation in My Investments?
What are Asset Classes?
Telecom is short for telecommunication, and it includes companies involved in the important business of communication
Some annuities have death benefit riders that may give your beneficiaries more than was actually in your account
One advantage to Roth 401(k)s is that they do not have income limits which may have barred high earners in the past
403(b)s have essentially the same distribution rules as 401ks. Taking money out before retirement is strongly discouraged
The expense ratio is the annual management fee charged to shareholders by ETFs and mutual funds
Liar loans are a term that refers to loans or mortgages that were granted with little or no request for documentation
The Accounts Receivable line will contain the amounts owed to the company which are due to be received in the near future
The Federal Housing Administration runs the FHA loan program with the help of certified lending institutions
The Head-and-Shoulders Top pattern forms when a stock is testing new highs on an uptrend, but fails to retest its high
The Broadening Wedge Ascending pattern forms when a currency pair price progressively makes higher highs and higher lows