May 2014 AAII ASSET ALLOCATION MODELS UPDATED

Posted on June 11, 2014 | Asset Allocation

STOCKS – 1 YEAR

Large-Cap Stocks: 20.25%
Mid-Cap Stocks: 17.57%
Small-Cap Stocks: 19.16%
International Stocks: 18.86%
Emerging Markets Stocks: 3.68%

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April 2014 AAII ASSET ALLOCATION MODELS UPDATED

Posted on May 11, 2014 | Asset Allocation

STOCKS – 1 YEAR

Large-Cap Stocks: 22.45%
Mid-Cap Stocks: 18.53%
Small-Cap Stocks: 21.76%
International Stocks: 19.20%
Emerging Markets Stocks: 1.27%

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March 2014 AAII ASSET ALLOCATION MODELS UPDATED

Posted on April 11, 2014 | Asset Allocation

STOCKS – 1 YEAR

Large-Cap Stocks: 21.65%
Mid-Cap Stocks: 20.71%
Small-Cap Stocks: 25.11%
International Stocks: 17.22%
Emerging Markets Stocks: -2.98%

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February 2014 AAII ASSET ALLOCATION MODELS UPDATED

Posted on March 11, 2014 | Asset Allocation

STOCKS – 1 YEAR
Large-Cap Stocks: 25.17%
Mid-Cap Stocks: 26.05%
Small-Cap Stocks: 31.38%
International Stocks: 19.62%
Emerging Markets Stocks: -8.03%

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January 2014 AAII ASSET ALLOCATION MODELS UPDATED

Posted on February 26, 2014 | Asset Allocation

STOCKS – 1 YEAR

Large-Cap Stocks: 21.31%
Mid-Cap Stocks: 15.33%
Small-Cap Stocks: 26.73%
International Stocks: 11.24%
Emerging Markets Stocks: -12.31%

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August 2013 AAII ASSET ALLOCATION MODELS UPDATED

Posted on September 10, 2013 | Asset Allocation

STOCKS – 1 YEAR

Large-Cap Stocks: 18.52%
Mid-Cap Stocks: 23.14%
Small-Cap Stocks: 26.34%
International Stocks: 18.45%
Emerging Markets Stocks: -2.00%

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What Assets “Count” as Part of Your Total Investment Portfolio?

Posted on August 14, 2013 | Asset Allocation


Howard and Thelma Morrison were recently married. They are both in their early 30s, and each has brought valuable assets into their marriage. Now, they are in the process of consolidating them.

At the same time, they are starting to take a serious look at setting up an investment plan. Neither had really given much thought to investing before they were married; they simply made decisions about individual investments as the need arose, with no overall plan in mind. Now, they have decided that the best approach is to determine an appropriate asset allocation and try to refocus their investments according to the plan.

First, however, they need to take stock of where they currently stand—the current allocation of their investment portfolio. And that has led to some confusion: Which of their assets should they include as part of their “investment portfolio?” Some of the assets are relatively clear, but others are less so.

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Tailoring Your Allocation to the Stage You’re in With Life Cycle Funds

Posted on August 13, 2013 | Asset Allocation


In an effort to make financial life easier, the concept of a “life cycle” mutual fund was born. The idea was to offer specific asset allocations and investment selections for specific investment objectives—all bundled up in one fund. And some companies provide these kinds of funds in their 401(k) plan offerings.

Today, life cycle mutual funds go by many names including “strategic allocation”, “asset manager,” “personal strategy,” “life strategy” and “target retirement.” However, the underlying theme of these funds is the same—one fund that would answer the asset allocation needs of an individual at a particular stage in life.

But nothing is ever easy. Although these funds were created to make things simpler for investors, the layered complexity of life cycle fund choices presents a difficult investment task.

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Picking the Right Tax Pocket for Your Assets

Posted on December 5, 2012 | Asset Allocation


One big advantage of a 401(k) plan is that it is tax-advantaged—it helps minimize the amount of money Uncle Sam can grab from your pockets in the form of taxes.

But the best way to limit Uncle Sam’s reach is to make sure you are putting the right assets in the right pocket. In this instance, the pockets are either taxable savings accounts or tax-deferred 401(k) accounts.

The decision as to which account—taxable or tax-deferred—will hold your stock assets and which will hold your fixed-income assets while attaining your desired asset allocation is often referred to as the “asset location” decision. If you are just starting out and have savings only in your 401(k) plan, the decision is relatively easy.

But sooner or later you will be saving in both taxable and tax-deferred accounts. In this situation, your first decision, as always, is your asset allocation decision—the percentage of your total savings that you invest in the various asset categories.

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Retiree Stock Allocation Recommendations: Do You Fit the “Mold”?

Posted on November 28, 2012 | Asset Allocation


How much of your portfolio should be invested in stocks if you are a retiree living off of your retirement savings?

The answer depends on how closely you fit the typical “mold.”

At first blush, there would appear to be a fair amount of disagreement among the “experts” on this seemingly basic question. But upon closer examination, it is clear that many of these disagreements stem from differing assumptions about the typical retiree.

In this article, we’ll take a look at the basic disagreements that exist among professionals. A better understanding of the assumptions that underlie their models—and how those assumptions affect the recommendations—can help you determine which “mold” comes closest to fitting your own situation.

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