Managing your allocation
If juggling your investments to keep
your allocation mix the way you want it seems complicated,
it doesn't have to be.
 For
instance, let's say you've chosen an allocation model of
60% stocks, 30% bonds, and 10% cash. Then each time you
have money to invest — say $1,000 — you could
put $600 into a stock mutual fund, $300 into a bond fund,
and $100 into a money market mutual fund toward the purchase
of your next CD or T-bill.
While your overall portfolio may never be allocated as
precisely as a hypothetical model, perfection isn't what
you're after. And by adding money to all three investment
categories in approximately the proportions you've decided
on, you've made it easier to stay on top of allocating
your assets. |
Professor
Roger Ibbotson, Yale University, chairman and founder
of Ibbotson Associates 