Happy Birthday, Dummies! No, I don’t mean you—I mean Asset Allocation For Dummies®. I’ll send you a copy of the book if you’ll even think about using asset allocation to improve your portfolio in 2022.
For many investors, “asset allocation” translates to “risk,” meaning, “I’ll lose money.” In May 2009, when AAFD published, Jerry and I couldn’t convince readers about asset allocation, despite the fact that it’s the one step the individual investor can take to improve their portfolio’s returns.
The book published at the absolute bottom of the financial meltdown of 2007-2009, but while you’re laughing over the timing of a book on every investor’s least favorite financial topic, let me ask you another question about an equally overlooked investing basic:
Have you rebalanced your portfolio this year? I know is rebalancing is hard to do, because it just doesn’t seem to make sense, to sell when the financial markets are rising, and buy when they’re low. Nearly three in every 10 investors approaching retirement have never—or can’t remember when—they last rebalanced their portfolio. Are you one of them? I’ll send you a copy of the book, if you’ll tell me why.
Still not convinced? Then read the reviews below, one from a Gen-Xer and one from a noted Washington Post personal finance columnist:
Amazon.com: “Great Book to Demystify Asset Allocation”
“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, it’s 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 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.” Amy Z. Burchenal, St. Augustine, Florida
An artist and photographer who manages her family’s finances and reads financial books, Amy was living in Brooklyn, New York, when she read my book. After looking at the balance in my retirement account, which sunk more than 5% overnight after Russia’s invasion of Ukraine in February 2022, Amy’s reference to “the current downturn and ongoing volatility” is as timely today as when Asset Allocation published.
The Washington Post: “The Ins and Outs of Asset Allocation”
Michelle Singletary, The Washington Post’s personal finance columnist, selected Asset Allocation For Dummies® as her “book of the month” in July 2009. She hosted me and Jerry for an hour-long webcast to answer questions from investors. Read the review here.
