Author Craig Israelsen clearly explains just how easy it is to manage a successful portfolio with a plan, rather than managing your money piecemeal. His three key guidelines in the 7Twelve recipe are deceptively simple: select 12 different ingredients (such as mutual funds), allocate your investment equally among all 12 funds, and rebalance the 12 funds on a periodic basis, such as annually. Israelsen describes in straightforward and ready-to-apply terms what your portfolio should look like and outlines how to make it a reality for you. In 15 succinct chapters, he takes you step by step through the process of building and managing a portfolio that optimizes performance and minimizes risk. He begins by demonstrating how diversification is actually achieved and introduces various ways to meaningfully measure portfolio performance. He then outlines how to actually build and manage the 7Twelve portfolio—from periodic rebalancing to changes in the asset allocation over the life cycle—and specifically addresses the all-important issue of portfolio durability during the retirement years. Israelsen also presents research that sheds light on some of the most-debated topics among investors: value versus growth, active versus passive investing, and some of the perplexing problems in many target- date mutual funds.
Better risk-adjusted performance is the key benefit of building broadly diversified investment portfolios, and only by combining a wide variety of asset classes can an investment portfolio produce superior performance with lower levels of risk. The 7Twelve approach provides diversification depth within each separate mutual fund, and diversification breadth across the 7 asset classes—a recipe that provides ideal risk-controlled performance.
Ditch your financial adviser and use Dr. Israelsen's well planned approach to investing.Published 1 month ago by Susan Bachtelle
I am a 40 year veteran in the investment industry and I fornd this book to be invaluable. Read it !!!!!Published 3 months ago by RICHARD CONWAY
Israelsen's research is spot on as to why breadth and depth is so important to portfolio development. Read morePublished 7 months ago by Michael Miller
This book presents a useful strategy and I have incorporated some of its concepts...it was consistent with my low-maintenance index fund approach anyhow. I'm glad I bought it. Read morePublished 8 months ago by Robert R. Hallmark
Easy to read. Makes sense. Takes emotional element out of investing. Allows for slight tolerances in risk but guides an investor toward good returns while lowering the overall... Read morePublished 8 months ago by Don Koenigsknec ht
Great read! As a Certified Financial Planning professional, it was great to read some pretty sophisticated ideas boiled down into easy to use concepts. Read morePublished 9 months ago by will harris
This book gives a simple but effective strategy for diversification using low cost index funds. With the method described you can create a very well diversified portfolio with an... Read morePublished 9 months ago by Jonathan Koomey
This book has caused to revise my retirement portfolio. The diversification recommended inn this book is broader than my current allocation.Published 14 months ago by David Bourdon
A fairly simple investment plan that doesn't need constant tinkering and works historically. It is a simpler version of the plans financial professionals charge big bucks for. Read morePublished 17 months ago by David Hunsberger