As we all know, asset allocation is the implementation of investing in different types of assets like stocks, bonds, cash, etc. It is a strategy that balances risk and reward, but it is primarily based on you, the investor. Before you even think about asset allocation, you should really have your financial goals and a timeline figured out, so you know what you’re growing your money for and how you want your investments to work for you.

There are a lot of factors that go into this fundamental investment strategy, and in this episode, we’re going to touch on them all. We will cover:

  • How to get started in asset allocation
  • What types of investment options are available?
  • Review how risky each type of investment is and why you’d want to invest, or not,
  • Diversification
  • Inflation
  • Tips to change your views on investing
  • How much to put in each asset class?
  • Why should you rebalance your portfolio?

And more!

Asset allocation can be a challenging subject for many people because they just want to protect their money. And it truly can require a shift in mindset. Our goal is to help you get and stay on the right path so you can smoothly grow and enjoy your wealth. So, if you’re struggling with a riskier allocation, find yourself trying to time the markets, or just want a refresher to make sure you’re on the right track, then join us.

P.S. Looking to meet with Richard or Angela? Want to discuss more of what you heard in this episode? Wondering where the heck you need to get started or what all of this means for your retirement plans? Scheduled free 30-minute session and find the peace of mind you deserve for the rest of your life.

“Begin with the end in mind. Your time horizon is one of the most important factors when considering your investment allocation, in order to select an asset, you need to know what you want it to do.”

Did you mention “Guide” above? Why yes, yes we did. We’re proud to present you with our “Know Your Possibilities Guide,” a tool and free resource for you to take notes, review, keep on hand, or even share with your friends and family. So grab your copy, click the play button and follow along. You’re just minutes away from discovering your next Place of Possibility.

A Glance at this Episode:

2:05 – So, how do you begin with asset allocation? Listen here to get started.

2:59 – Let’s talk about the building blocks of asset allocation – the actual investments that you have in your portfolio.

3:44 – What exactly is a bond? Let’s break it down.

4:48 – Next up is stocks. To get a better understanding, start listening here.

6:35 – Moving away from liquidity, here are a couple of other investments you could get in on.

8:47 – Things are starting to get risky. Listen now as Richard and Angela highlight the investments with the most risk.

10:35 – Now that we know what our options are, how do we choose? Team DMG has you covered.

11:49 – Many people believe they can beat the market by buying stocks and bonds themselves. This isn’t necessarily the best move. Here’s why.

12:52 – It’s time to discuss the importance of diversification.

14:18 – What the heck is diversification with respect to correlation of return?

15:45 – Okay, so what happens if I go and buy into three different mutual funds? Am I good to go with lots of diversification? The answer may surprise you.

17:59 – Now for some nitty-gritty. How much do you decide to put in each asset class?

21:13 – You’ve got to hear this quote and the simple shift in mindset that will change your future!

23:28 – Inflation is another big reason why we invest. Here are the details.

26:11 – You cannot just set your portfolio and forget it! You must rebalance your portfolio. Start listening now for more.

28:11 – Listen now to find out what foundation your portfolio should be built on. Hint: Facts, not fears!

30:39 – How do you know the mix of your mutual fund?

31:44 – What’s up with age-based investing funds?


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Links/Resources Mentioned in this Episode:

Yahoo Finance

Evidenced Based Investing Insights

A Place o Possibility Ep. 01: How to Retire on a Lump Sum

A Place of Possibility Ep. 02: Why Should I Invest in Real Estate

A Place of Possibility Ep. 03: Roth IRA: How to Build a Tax-Free Retirement

Alamo, CA neighbors and beyond it’s time to discover your Place of Possibility™ today. Our goal is to address every aspect of your life, defining a clear and actionable plan that meets your lifestyle needs. So, whether we’re holding your hand or taking more of the reins for you while you do life, you can rest assured that your money is growing and working for you while you enjoy it. Who knew?! Sound like something you’re struggling with or need more of? Get in touch to schedule a free 30-minute consultation, and let’s get started! You can contact us in a few different ways. One, by calling at 925.736.6410, you can send us an email at or jump right into our calendar and select a date and time that works for you. We’re excited to meet with you!

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