What Are the Asset Classes?

Ike IkokwuFinancial Guides, Financial Independence Coach, The Blog

The securities that exist in today’s financial markets can be divided into four main classes: stocks, bonds, cash, and foreign holdings, with the first two representing the major part of most portfolios. These categories can be further subdivided by “style.” Let’s take a look at these classes in the context of mutual fund investments:

How Does Asset Allocation Work?

Ike IkokwuFinancial Guides, Financial Independence Coach, The Blog

Asset allocation planning can range from the relatively simple to the complex. It can range from generic recommendations that have no relevance to your specific needs (dangerous) to recommendations based on sophisticated computer techniques (very reliable although far from perfect). Between these extremes, it can include recommendations based only on your time horizon (still risky) or on your time horizon … Read More

What Is Asset Allocation?

Ike IkokwuUncategorized

Asset allocation is based on the proven theory that the type or class of security you own is much more important than the particular security itself. Asset allocation is a way to control risk in your portfolio. The risk is controlled because the six or seven asset classes in the well-balanced portfolio will react differently to changes in market conditions … Read More

Asset Allocation

Ike IkokwuFinancial Guides, Financial Independence Coach, The Blog

How To Diversify For Maximum Return Asset allocation-not stock or mutual fund selection, not market timing-is generally the most important factor in determining the return on your investments. In fact, according to research which earned the Nobel Prize, asset allocation ( the types or classes of securities owned) determines approximately 90% of the return. The remaining 10% of the return … Read More

Financial Planning Checklist

Ike IkokwuFinancial Guides

Once you’ve finished with your tax planning for the year, and your return is safely on its way to the IRS, you’re at an excellent point for a quick financial check-up. Your tax return is handy, as a quick snapshot of your financial situation, and the figures are recent and accurate. Take a few minutes to consider these questions:

How To Prepare Financially For A First Marriage

Ike IkokwuFinancial Guides, Financial Independence Coach, The Blog

For the young, newly married couple, areas of financial concern primarily include: (1) life insurance, (2) form of property ownership, and (3) money management. Life Insurance When it comes to insurance needs, the basic rule is that you need enough coverage to sustain your family’s present income level should you die. If you are the only breadwinner, or if you … Read More

Claiming the Small Business Health Care Tax Credit

Ike IkokwuFinancial Guides, Financial Independence Coach, The Blog

If you’re a small business owner with fewer than 25 full-time equivalent employees you may be eligible for the small business health care credit that went into effect in 2010. What is the Small Business Health Care Credit? The small business health care tax credit, part of the Affordable Care Act enacted in 2010, is specifically targeted to help small … Read More