货币英语 08 Asset Allocation

by Andrew Horowitz.

Today on “Money Girl” I will be discussing the importance of asset allocation and how it alone can shape your financial future.
Do you want to start investing but don’t know where to start? Are you already investing but think that your portfolio¹ has too much volatility²?
A listener writes in:
I have a 401k plan, a few bank accounts, mutual³ funds and some real estate. It seems that all of my investments are going down on a regular basis, and I hate to open the mail when it is statement time. How can I put together a plan that so I can stop worrying about? It is really starting to get to me.
Thanks for your question. It is a great one… and very timely…
Let’s start you off with one of those fancy financial terms, break it apart, and then figure out how we can make it work for your situation.
Asset Allocation
The term: Asset allocation. This is probably one of the most important parts of the portfolio planning process. Your portfolio needs to be a mix of several different asset classes, many different investment vehicles and different types of industries. These can include things like money markets, bonds, stocks, real estate, precious metals , luxury items and maybe even foreign currencies.
If we roll up our sleeves a bit and delve⁴ even deeper into the portfolio logistics we can further separate each asset into classes by size … large cap, mid⁵ cap and small cap, as well style… growth, blend, or value.
What is in your portfolio is a matter of personal preference and should be carefully planned to weigh out the amount of risk that you are willing to accept. But as long as you have an Asset Allocation roadmap planned out, that part is much easier.
Maintain a Diversified⁶ Portfolio
The one word you will likely hear most when talking or reading about asset allocation is diversification⁷. Basically it’s just another one of those fancy financial terms that simply means spreading your assets out amongst various different sectors⁸ and classes in order to reduce risk.
So, why should you have a diversified portfolio? Wouldn’t it be just better to jump in on a hot stock and put all your money into that? Or maybe even buy a few parcels of land and develop that? The short answer is that it is rare that any two markets will be soaring at the same time. Thus you might have all your money in real estate and the market tanks (like it just did). What then? Not a pretty picture.
By diversifying⁹ your portfolio you are reducing the risk of loss during market set backs. If one market fails, well it's okay, because you still have another group of asset classes that will hold up. And chances are that while one may be in trouble; another one will be moving up in value.
In my book, The Disciplined Investor¹⁰, I talk about a portfolio and compare it to a flower garden. If your garden is full impatiens, it will look gorgeous when in full bloom. But if you live in Florida, like me, during the summer they will be a dead pile of rotting muck. On the other hand, if you have a garden with some impatiens, some rose bushes, and even a few evergreens¹¹ (like money markets) and maybe a few annuals and perennials¹², something is sure to be in bloom at any given time of the year. That is how your portfolio should be as well. The trick is to have investments with different risks and styles, sectors, and in different regions to allow for profits to bloom over time. Manage Your Investment Time Frame
Another important factor to consider in planning your Asset Allocation is your time frame. Are these investments going to be lifelong commitments or do you plan on changing or trading them throughout the year? The longer your projected time line is, the more risk you can take because you’ll be able to wait out the various investment cycles. The asset allocation process helps you weed and feed your garden. So if one asset drops you may want to bring that back into alignment¹³ by shifting monies into the lower cost ones. Since you may be in no rush to withdraw your money, it will have a plenty of time to recover and your lower basis may help to add profits down the road.
This type of disciplined investment process can have some amazing long-term benefits and set up a happy retirement¹⁴ if properly planned and tended to. Remember, asset allocation is one of the first and one of the most important components¹⁵ when planning your portfolio strategy. It has been proven that what’s in your portfolio is important, but not nearly as important as your diversification and the division of assets.
Cha-Ching …and that’s all for now.  Courtesy of Andrew Horowitz, QDT's Winning Investor and guest host of Money Girl’s Tips for a Richer Life. Thanks for tuning¹⁶ in to “Money Girl”. And thanks to Bill and Lilach for sending in questions on Asset Allocation. We are going to send you a copy of my book, for helping¹⁷ is with this episode. This is Andrew Horowitz sitting in for The Money Girl. Listen to my other weekly podcast, The Disciplined Investor, which is also available on iTunes.

More information on Asset Allocation and how to balance your portfolio is available on the Quick and Dirty Tips Website.

 
As always, everyone’s situation is different, so be sure to consult a tax or financial advisor¹⁸ before making important financial decisions. This podcast is for educational purposes only and is not intended to be a substitute for seeking personalized, professional advice.

Thanks for listening!

 

1 portfolio   

n.公事包；文件夹；大臣及部长职位

参考例句：

• He remembered her because she was carrying a large portfolio.他因为她带着一个大公文包而记住了她。
• He resigned his portfolio.他辞去了大臣职务。

2 volatility   

n.挥发性，挥发度，轻快，（性格）反复无常

参考例句：

• That was one reason why volatility was so low last year.这也是去年波动性如此低的原因之一。
• Yet because volatility remained low for so long,disaster myopia prevailed.然而，由于相当长的时间里波动性小，灾难短视就获胜了。

3 mutual   

adj.相互的，彼此的；共同的，共有的

参考例句：

• We must pull together for mutual interest.我们必须为相互的利益而通力合作。
• Mutual interests tied us together.相互的利害关系把我们联系在一起。

4 delve   

v.深入探究，钻研

参考例句：

• We should not delve too deeply into this painful matter.我们不应该过分深究这件痛苦的事。
• We need to delve more deeply into these questions.这些是我们想进一步了解的。

5 mid   

adj.中央的，中间的

参考例句：

• Our mid-term exam is pending.我们就要期中考试了。
• He switched over to teaching in mid-career.他在而立之年转入教学工作。

6 diversified   

adj.多样化的，多种经营的v.使多样化，多样化( diversify的过去式和过去分词 )；进入新的商业领域

参考例句：

• The college biology department has diversified by adding new courses in biotechnology. 该学院生物系通过增加生物技术方面的新课程而变得多样化。 来自《简明英汉词典》
• Take grain as the key link, develop a diversified economy and ensure an all-round development. 以粮为纲，多种经营，全面发展。 来自《现代汉英综合大词典》

7 diversification   

n.变化，多样化；多种经营

参考例句：

• The seminar was to discuss diversification of agriculture. 该研讨会讨论的是农业多种经营。 来自辞典例句
• Firm diversification is increasingly achieved by the means of takeover and merger. 通过接管和兼并，厂商经营范围日益多样化。 来自辞典例句

8 sectors   

n.部门( sector的名词复数 )；领域；防御地区；扇形

参考例句：

• Berlin was divided into four sectors after the war. 战后柏林分成了4 个区。 来自《简明英汉词典》
• Industry and agriculture are the two important sectors of the national economy. 工业和农业是国民经济的两个重要部门。 来自《现代汉英综合大词典》

9 diversifying   

v.使多样化，多样化( diversify的现在分词 )；进入新的商业领域

参考例句：

• Some publishers are now diversifying into software. 有些出版社目前正兼营软件。 来自辞典例句
• Silverlit is diversifying into new markets, such as Russia and Eastern Europe. Silverlit正在使他们的市场变得多样化，开发新的市场如俄罗斯和东欧国家。 来自互联网

10 investor   

n.投资者，投资人

参考例句：

• My nephew is a cautious investor.我侄子是个小心谨慎的投资者。
• The investor believes that his investment will pay off handsomely soon.这个投资者相信他的投资不久会有相当大的收益。

11 evergreens   

n.常青树，常绿植物，万年青( evergreen的名词复数 )

参考例句：

• The leaves of evergreens are often shaped like needles. 常绿植物的叶常是针形的。 来自《简明英汉词典》
• The pine, cedar and spruce are evergreens. 松树、雪松、云杉都是常绿的树。 来自辞典例句

12 perennials   

n.多年生植物( perennial的名词复数 )

参考例句：

• Name six perennials and six annuals suitable for indoor flower arrangement. 列出多年生及一年生花朵各六种，它们必须是适合插花的。 来自互联网
• Herbage can be divided into three categories: annuals, biennials, and perennials. 草本植物可分成一年生、二年生和多年生。 来自互联网

13 alignment   

n.队列；结盟，联合

参考例句：

• The church should have no political alignment.教会不应与政治结盟。
• Britain formed a close alignment with Egypt in the last century.英国在上个世纪与埃及结成了紧密的联盟。

14 retirement   

n.退休，退职

参考例句：

• She wanted to enjoy her retirement without being beset by financial worries.她想享受退休生活而不必为金钱担忧。
• I have to put everything away for my retirement.我必须把一切都积蓄起来以便退休后用。

15 components   

（机器、设备等的）构成要素，零件，成分； 成分( component的名词复数 )； [物理化学]组分； [数学]分量； （混合物的）组成部分

参考例句：

• the components of a machine 机器部件
• Our chemistry teacher often reduces a compound to its components in lab. 在实验室中化学老师常把化合物分解为各种成分。

16 tuning   

n.调谐，调整，调音v.调音( tune的现在分词 )；调整；（给收音机、电视等）调谐；使协调

参考例句：

• They are tuning up a plane on the flight line. 他们正在机场的飞机跑道上调试一架飞机。 来自《简明英汉词典》
• The orchestra are tuning up. 管弦乐队在定弦。 来自《现代汉英综合大词典》

17 helping   

n.食物的一份&adj.帮助人的，辅助的

参考例句：

• The poor children regularly pony up for a second helping of my hamburger. 那些可怜的孩子们总是要求我把我的汉堡包再给他们一份。
• By doing this, they may at times be helping to restore competition. 这样一来, 他在某些时候,有助于竞争的加强。

18 advisor   

n.顾问，指导老师，劝告者

参考例句：

• They employed me as an advisor.他们聘请我当顾问。
• The professor is engaged as a technical advisor.这位教授被聘请为技术顾问。