Dallas County Living Well Magazine March/April 2016

The Intelligent Investor “Learn every day, but especially from the experiences of others. It’s cheaper!” — John C. Bogle What Experts Say About “Asset-Allocation & Diversification” “The stock market will fluctuate, but you can’t pinpoint when it will tumble or shoot up. If you have allocated your assets properly and have sufficient emergency money, you shouldn’t need to worry.” ~AAII Guide to Mutual Funds “The impact of asset allocation or investment policy swamps the other (investment) decisions.” ~The Informed Investor by Frank Armstrong “Manage all of your financial assets--retirement accounts, taxable account, kids’ college money, emergency money, etc.--as a single portfolio.” ~Bill Bernstein, author of Four Pillars of Investment “Asset allocation is critically important; but cost is critically important, too -- All other factors pale into insignificance.” ~Jack Bogle “Your most important portfolio decision can be summed up in just two words: Asset Allocation.” ~The Bogleheads’ Guide to Investing “The first step in assembling an investment portfolio is to decide how to spread your dollars among stock, bond, and cash investments. Spend a lot of time on this decision--it is the most important one you will make.” ~Straight Talk on Investing by Jack Brennan “If your stock portfolio looks very different from the broad stock market, you’re assuming additional risk that may, or may not, pay off.” ~What Works and What Doesn’t by Andrew Clarke “Forget Wall Street’s exotic garbage. Instead, stick with stock, bond, and money market funds.” ~You’ve Lost It. Now What? by Jonathan Clements “Keep it simple, very simple. Lazy investing works.” ~Lazy Person’s Guide to Investing by Paul Farrell “Early savers need only two or three no-load mutual funds to fill an investment portfolio. Start with a total U.S. stock market index fund and add a total bond market index fund.” ~Protecting Your Wealth by Rick Ferri “Asset allocation and diversification are the foundation stones of successful long-term investing.” ~Asset Allocation by Roger Gibson “Sit down and draft an asset allocation plan. If you don’t know how much of your total net worth is allocated to each asset class and why, then you’re making about the worst mistake in investing.” ~The Great Mutual Fund Trap by Ginsler and Baer “Development of a long-term investment plan constitutes the most important single investment decision that you are likely to make.” ~Index Your Way to Investment Success by Good and Hermansen “The investor may vary his holding of common stocks between the 25% minimum and the 75% maximum.” ~The Intelligent Investor by Graham & Zweig “If you want diversification without much fuss, try a hybrid fund, which blends stocks and bonds for a one-stop shopping approach.” ~Take on the Street by Arthur Levitt, SEC Commissioner “Many studies have concluded that the major determinant (90%) of the overall rate of return earned by investors is not the particular bond or stock funds they buy, but rather the way they allocate their investment funds among the various asset classes.” ~Random Walk Guide by Burton Malkiel

Dallas County Living Well Magazine March/April 2016 | Page 45