Answers in Portfolio Management

Portfolio Management is a form of investment management where a person or group of people takes control of money given to them by investors who trust the managers to implement a strategy to help them achieve their investment goals.
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Laurie Itkin Level 2
There are so many low-cost exchange-traded funds (ETFs) that can capture high-quality, dividend-paying stocks of companies in Europe. If you are going to invest in blue-chip, dividend-paying US stocks, you'll find that some of the companies in the UK, ...(more)
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Frank Reilly Level 20
Even though international investments may be risky themselves, having an allocation to them in your portfolio does increase the diversification and can slightly reduce the risk of the portfolio as a whole.
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Richard P Taylor Level 17
Carol, I agree with a lot of what has already been said in previous answers. In reference to your concern about your advisor: I am sure that he/she is a very good and successful advisor. However, I have found in my career that very large (successful) ...(more)
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Daniel, I would like to add to the discussion and offer a slightly different view. There is something called "blind diversification" which lacks an understanding of the why as to how asset classes behave and relate to one another. While international ...(more)
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Daniel, I firmly believe that diversification does require international exposure. That being said, you need to know what you are invested in and what you are adding to your portfolio when you try to determine your level of diversification. What I mean, ...(more)
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I fall into the "international" investing offers diversification benefits and better risk adjusted returns. However, it is worth noting that AAII Journal (American Association of Individual Investors) recently removed all international investments from ...(more)
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Daniel...I agree with Richard. In that the short answer is yes. There are 3 simple rules to successful investing. Own equities and high quality short term fixed income...GLOBALLY diversify...Rebalance. This is a formula of successful investing speculating ...(more)
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Richard P Taylor Level 17
Daniel, the short answer is yes. A properly diversified portfolio would have some exposure to international both equity and debt. That being said, exactly where internationally and how much is a question that can only be answered by someone who knows ...(more)
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While I believe that you should have a home country bias to the U.S. since your liabilities are in the U.S., there are advantages to investing in other countries. As Randy mentioned, the correlation with U.S. assets is one possible advantage as it can ...(more)
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Most people suffer from “home bias” when constructing their portfolios (you can Google “home bias in investing” to learn more). Thus, it is likely that you have 80% of your assets in U.S. stocks and bonds. Note that while the U.S is 22% of global GDP, ...(more)
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When it comes to 529 Plans, there are direct offered plans where you work directly with the mutual fund company such as Vanguard and then there are the advisor-offered plans. There are pros and cons for each type. Selecting an advisor-offered plan would ...(more)
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Probably the best 529 plan is Maine's which provides $500 for every baby born in Maine and $200 for every maine resident resident regardless of age or birthplace... More details here... http://saltwaterharbor.com
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Laurie Itkin Level 2
You don't necessarily need to work with a financial advisor to set up 529 plans for your kids. Here's an excellent site which gives you information and links to numerous 529 plans: http://money.usnews.com/529s Try to find a plan with low fees and a variety ...(more)
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Carolyn gave a good answer. There are a lot of people that have been convinced that passive/index investing is superior to active management. I believe that's based on the large number of active funds that do not beat their benchmarks net of fees. ...(more)
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Richard P Taylor Level 17
Carolyn hit the nail on the head with this one. I would only add one comment with regards to "active" vs. "passive". Generally speaking you are going to have a higher internal cost with active managers. Passive management tends be cheaper.
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