The Role of Risk-Free Assets

Posted on March 30, 2012 | Financial Planning

Treasury bills and other cash investments have the advantage of liquidity and little downside risk, but they offer no real long-term growth, and typically the income is the lowest among fixed-income alternatives.

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From Theory to Practice: How to Apply MPT Concepts to Your 401(k) Plan

Posted on March 12, 2012 | Financial Planning

Fortunately, you don’t need a Ph.D. in investment theory to benefit from the implications of MPT. In fact, the general concepts can guide you in better managing your own 401(k) portfolio. Just what is MPT?

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Reach Your Retirement Goals By Following 10 Basic Axioms

Posted on March 8, 2012 | Financial Planning

10 axioms of effective investing provide the critical cornerstone for guiding investment philosophy and making decisions. This will ensure that you meet the universal goal of creating financial wealth for retirement.

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AAII Investment E-Books

Posted on February 23, 2012 | Financial Planning

AAII’s e-books bring complicated investment topics down to earth in a concise and conversational way.

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AAII Asset Allocation Models

Posted on February 21, 2012 | Financial Planning

Our asset allocation models show you how to properly diversify a portfolio based on your tolerance for risk.

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Strategies for Married Couples: How to Coordinate Your Plans

Posted on January 8, 2012 | Financial Planning

Many employees think of their 401(k) plan allocations in isolation. But if you are married and your spouse works, you are both likely contributing to employee-sponsored plans. And if that is indeed the case, your allocation approaches should be “married” as well. After all, when you retire, you will be living off of both retirement plans as a couple, and following two separate approaches and two separate goals may result in neither goal being met. In addition, some 401(k) plans may offer better investment options than others.

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Does Social Investing Generate Higher Returns?

Posted on January 6, 2012 | Financial Planning

Companies with high social responsibility ratings outperformed companies with low ratings, but to get the highest returns, you should not shun shares of any company.

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The Basics of Portfolio Allocation

Posted on January 4, 2012 | Financial Planning

Learn what an asset class is and get some simple allocation strategies.

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Your Company’s Stock: A Good or Bad Bet for Your 401(k)?

Posted on December 23, 2011 | Financial Planning

There are upsides and downsides to owning company stock in your plan, including incentives offered by your employer and the fact that you are dependent on your employer’s future for your job security.

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Financial Planning with AAII

Posted on November 29, 2011 | Financial Planning

The fun part about a 401(k) plan is watching it grow over time. But that can easily turn into a frustrating exercise if you don’t understand your retirement plan statement.

Although your employer is required to provide you with a plan statement, there is no standardized form—most, in fact, are quite different. However, Figure 1 (see bottom of page) gives you an idea of some of the information that may be included.

The statement in Figure 1 is divided into several sections: activity this period, current contributions allocation, and a summary of contributions.
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