Practical Asset Allocation

Asset allocation is a subject we’ve covered at various times here on MeaningfulMoney as it is a core tenet of successful investing. But how do you apply it in real life to your investments? Is there such a thing as a ‘correct’ asset allocation? Let’s find out…   Sponsor Message This podcast is brought to you with the help of Seven Investment Management, a firm of investment managers based in London. They specialise in multi-asset investing, bringing institutional investing techniques to ordinary people like you and me. 7IM put their name to my show and to my site because they believe in what I’m doing, trying to get decent, easy-to-understand financial information out to the world. I’m very grateful to them for their support. You can see what they’re up to at 7im.co.uk Practical Asset Allocation Last week we talked about risk tolerance and risk capacity, and I suggested that you should maybe get your own risk tolerance measured over at myrisktolerance.com and then  conduct a couple of thought experiments to see where you might sit. That’s entirely theoretical though, and it may be the case that only once you have some skin in the game, i.e. some real money invested, that you’ll really know how you will cope with the inherent risk that comes wth investing. But how do you apply the theoretical to the real world? Let’s try to give you a start… In this session, you'll discover: What Asset Allocation is, and how it works The difference between Strategic and Tactical Asset Allocation, and why you should embrace one and ignore the other That there's no such thing as an optimal asset allocation Why you should start simple and build up carefully What kinds of funds you should actually buy to populate your asset allocation The off-the-shelf solution which will save you a load of work Resources mentioned in this week's show Risk Profiling: myrisktolerance.com Podcast: Season 2, Episode 1 - Why Invest? Podcast: Season 2 Episode 2 - Risk, Volatility & Timescale Podcast: Season 2 Episode 3 - Know Yourself: Risk Tolerance & Risk Capacity Try Audible for Free Previous Posts on Asset Allocation Podcast: Asset Classes, or stuff you can invest in Podcast: Investment Masterclass: Asset Allocation Videos on each asset class Cash    Gilts    Corporate Bonds    Shares    Property    Commodities     Gold    Hedge Funds    The Rest Free email course - Learn How To Invest   And of course, there is a full transcript available by clicking the big blue button below: TRANSCRIPT COMING SOON! Join the conversation I love to read and respond to your comments, so please do join in and share. Question: How have you set up your asset allocation? Share the love If this show is of any use to you, it would help me massively if you would take the time to leave me a review on iTunes. This has a huge impact on keeping me near the top of the rankings, which in turns helps more people to find the show and to subscribe. Just click the button below: