http://www.GenYwealth.com/asset-allocation-strategy How to Get Wealthy Wed, 14 Dec 2011 19:37:12 +0000 hourly 1 http://wordpress.org/?v=3.2.1 http://www.GenYwealth.com/asset-allocation-strategy/comment-page-1#comment-232 RJ Mon, 05 Apr 2010 14:53:23 +0000 http://GenYwealth.com/?p=1183#comment-232 Robert - I think I heard it first from the bogleheads. I like it because its not a cookie cutter asset allocation. It can be very flexible and used in both short and long term investing. Robert – I think I heard it first from the bogleheads. I like it because its not a cookie cutter asset allocation. It can be very flexible and used in both short and long term investing.

]]> http://www.GenYwealth.com/asset-allocation-strategy/comment-page-1#comment-231 Robert Wasilewski Sun, 04 Apr 2010 12:22:00 +0000 http://GenYwealth.com/?p=1183#comment-231 I had never seen "Maximum tolerable Loss X 2 = Maximum Equity Allocation" as an allocation rule-of-thumb. Interesting. Where did it come from? Unfortunately, it goes back to the earlier point on experience. It's one thing to answer a questionnaire about how much loss you can tolerate and quite another to experience it in the market. I've seen people claim they are willing to accept a 25% downturn in exchange for a sizeable but freak out when their portfolio drops 25%! I had never seen “Maximum tolerable Loss X 2 = Maximum Equity Allocation” as an allocation rule-of-thumb. Interesting. Where did it come from?
Unfortunately, it goes back to the earlier point on experience. It’s one thing to answer a questionnaire about how much loss you can tolerate and quite another to experience it in the market. I’ve seen people claim they are willing to accept a 25% downturn in exchange for a sizeable but freak out when their portfolio drops 25%!

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