Asset Allocation For Dummies [Paperback]

Dorianne Perrucci (Author), Jerry A. Miccolis (Author)

Book Description

ISBN-10: 0470409630 | ISBN-13: 978-0470409633 | Publication Date: May 11, 2009 | Edition: 1

An easy-to-understand how-to guide to the single most important thing you can do in investing — choosing and mixing your assets successfully.

You don’t need to be an expert analyst, a star stock-picker, or a rocket scientist to have better investment results than most other investors. You just need to allocate your assets in the right way, and have the conviction to stick with that allocation.

The big secret behind asset allocation — the secret that most sophisticated investors know and use to their benefit — is that it’s really not all that hard to do.

Asset Allocation For Dummies serves as a comprehensive guide to maximizing returns and minimizing risk — while managing taxes, fees and other costs — in putting together a portfolio to reflect your unique financial goals.  

Jerry A. Miccolis (Basking Ridge, NJ), CFA®, CFP®, FCAS, MAAA is a widely quoted expert commentator who has been interviewed in The New York Times and the Wall Street Journal, and appeared on CBS Radio and ABC-TV.  He is a senior financial advisor and co-owner of Brinton Eaton Wealth Advisors (www.brintoneaton.com), a fee-only investment management, tax advisory and financial planning firm in Madison, N.J. Dorianne R. Perrucci (Scotch Plains, NJ) is a freelance writer who has been published in The New York Times, Newsweek, and TheStreet.com, and has collaborated on several financial books, including I.O.U.S.A, One Nation, Under Stress, In Debt (Wiley, 2008).

 

Editorial Reviews

From the Back Cover

Use allocation strategies of the pros and protect your financial future

You don't have to be an investment expert to allocate your assets successfully. This plain-English guide demystifies the process, giving you timely advice on diversifying your investment portfolio to help insulate it against volatility. You'll see how to develop your personal investment strategy, avoid costly mistakes, and rebalance to generate extra return.

• The ABCs of asset allocation — discover how it works, why to do it, and the level of risk you're comfortable with

• Explore the different asset categories — from cash and bonds to stocks, mutual funds, exchange-traded funds, and more

• Plan your investment strategy — set your portfolio constraints, outline your financial goals, and select your asset classes

• Choose securities and accounts — select the best ones, understand fees and expenses, and take advantage of tax breaks

• Maintain your portfolio — keep tabs on your investments, know when to rebalance, and measure your results against appropriate market benchmarks

• Go beyond the basics — consider alternative investments (such as real estate and commodities), maximize after-tax results, and work with the pros when you need help

Open the book and find:

• The top asset allocation mistakes

• How to match the right investments with the right accounts

• Ways to successfully manage risk

• Best practices for portfolio rebalancing

• "What if?" investment scenarios

• Historical rates of return on ten asset classes and subclasses

• How to project your financial future

• Guidance for fine-tuning your long-term allocation plan

About the Author

Jerry A. Miccolis, CFA, CFP, FCAS, MAAA, is a financial advisor, widely quoted financial author, and expert commentator who has appeared on CBS Radio and ABC-TV.

Dorianne R. Perrucci is a freelance writer who has been published in The New York Times, Newsweek, and TheStreet.com, and has collaborated on several investing books, including I.O.U.S.A., One Nation, Under Stress, In Debt (Wiley, 2008).

Product Details

• Paperback: 360 pages
• Publisher: For Dummies; 1 edition (May 11, 2009)
• Language: English
• ISBN-10: 0470409630
• ISBN-13: 978-0470409633
• Product Dimensions: 9.2 x 7.4 x 0.8 inches
• Shipping Weight: 1.2 pounds (View shipping rates and policies)
• Average Customer Review: 4.2 out of 5 stars  See all reviews (14 customer reviews)
• Amazon Best Sellers Rank: #376,813 in Books (See Top 100 in Books)

Customer Reviews

Most Helpful Customer Reviews

21 of 21 people found the following review helpful:

5.0 out of 5 stars Depth, breadth -- and easy to read!, May 26, 2009

By 

Paul Lewis (Brookline, MA USA) - See all my reviews
(REAL NAME)   

This review is from: Asset Allocation For Dummies (Paperback)

This book makes an important but potentially heavy topic actually fun to read about. A nice sense of humor runs throughout, starting with the cover. No surprise that the text is written for "regular folks," as part of the "Dummies" series, but what did surprise me is how much useful information is packed into it. Besides asset allocation, the authors cover specific investment options, tax considerations, and how to pick a financial advisor if you decide to seek professional guidance. And the way the book is organized makes it very practical to use as a reference guide. Key concepts are concisely summarized up front; there's more detail on specific topics in later chapters, whenever you're ready for it.

By profession I'm a financial writer whose main audience is institutional investors. I was struck by how the authors take the same approach to asset allocation as the most sophisticated and successful pension and endowment funds, and make it all accessible to the layman.

The book has a clear goal in mind -- giving you all the information you need to be a successful long-term investor, without devoting your life to it or becoming a numbers geek -- and meets that goal exceedingly well.

16 of 16 people found the following review helpful:

5.0 out of 5 stars Asset Alocation for Dummies, June 25, 2009

By 

DG (NJ) - See all my reviews

Amazon Verified Purchase

This review is from: Asset Allocation For Dummies (Paperback)

First, let me explain that I am an inveterate stock picker and market timer. And, as a hobbyist, I've been pretty good at it. But as a responsible husband and father of two, I'm not reckless enough to think that my family's future should hinge on my continued ability to pick the right stocks and guess when the market is going to turn the next corner. Besides, the meltdown of the fall of 2008 shook me. I want to invest the bulk of the family assets in a way that might not be as exciting, but is a lot more reliable as far as securing our future lifestyle is concerned. That's what led me to the asset allocation approach. I searched a few titles for a primer on the subject and finally found this one. It's crystal clear in explaining asset allocation and how it works. It goes beyond that, too, in explaining rebalancing, how to locate assets in different accounts to save on taxes, how to find the right investments (stocks, bonds, real estate, commodities, mutual funds, exchange traded funds, etc.) at the lowest cost, how to tie our investments into our long-term financial plan, etc., etc. And the case studies really hit home. What really struck me, though, is that this is no simpleton's guide to investing -- the stuff that's covered is actually pretty sophisticated, but I can't imagine it being explained any more understandably than it is here. I would heartily recommend this book to all the do-it-yourselfers out there. You know, I would even recommend it to those who have financial advisors, since this book will make you a much more informed buyer of advice during these days when it's hard to trust anyone with your money. The chapter on how to grill an advisor before you hire one is worth the price all by itself.
[5 stars]

8 of 8 people found the following review helpful:

5.0 out of 5 stars Great book to de-mystify personal investing, July 2, 2009

By 

Amy B. Burchenal "Zburch" (New York, NY) - See all my reviews
(REAL NAME)   

This review is from: Asset Allocation For Dummies (Paperback)

I was reading Asset Allocation for Dummies on the subway recently and a man leaned over and whispered in my ear "Well, the current economic drawback has proven that asset allocation doesn't work anymore". Actually, its quite the contrary. Because of the current downturn and ongoing volatility, proper asset allocation is needed more than ever. Many people confuse asset allocation with just the stock market and stock picking. The fact is, you have to put your money somewhere, and active and knowledgeable asset allocation is the only way to protect yourself. You have to sprinkle it around, diversify and come up with a plan that best suits your goals.

I am a bookkeeper and business manager and have read a variety of financial advisory books. I picked Asset Allocation for Dummies because I recently fired my financial planner because he was not as engaged as I would have liked. I decided to take matters into my own hands. More than anything, this book has helped me to focus on the task at hand. The Dummies books are written in a comfortable colloquial manner, simple and to the point. But it is no way simplistic. From computing standard deviation to negative correlation, this book covers the basics and beyond. Its laid out in such a way that it can be used as a reference book and does not need to be read cover to cover depending on your knowledge base. It has helped me tackle the task at hand with confidence and ease. I would recommend it for anyone that wants to save and hold on to their money for retirement. The Madoff scandle has only reinforced the fact that blindly trusting others to manage your assets is not a good idea. Some basic knowledge of investing and strategy is imperative to anyone wanting to take responsibility for their own assets. Asset Allocation for Dummies is a great place to start.