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The goal of The ABC$ Of Investing, LLC, is to equip you with the ability to construct a portfolio of assets that is consistent with your investment tolerance, is properly allocated among the asset classes, and gives you the best opportunity to maximize your investment returns while at the same time minimizing your investment risks. |
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Asset Allocation |
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Through the use of our website, which provides an 83-year examination of asset class behavior, each individual will have the opportunity to view a series of presentations that are foundational in understanding the concept of asset allocation. Asset allocation is the cornerstone of successful investing and involves the process of creating a portfolio of assets that are allocated across asset classes. The further goal of ABCs is to instill an understanding of historical asset class behavior, which is the key to implementing the concept of asset allocation. |
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The Crisis in Retirement Planning |
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Many Americans know little about stocks, bonds, and retirement. This is the conclusion
reached by many companies and organizations who all have done studies or issued reports regarding 401(k) participant education.
According to these sources a majority of Americans do not know that stocks have had the
best historical returns of all investments. Eighty-six percent of Americans do not know the difference
between a growth stock and an income stock. Most Americans do not know why
they should diversify their investment portfolios, and 45 percent think diversification "guarantees" their investments will not
fall when the market does.
In more than a dozen surveys, performed by reputable firms for a host of organizations with
varying interests, Americans have shown generally poor knowledge about retirement and
saving. This has led to the overwhelming conclusion that 401(k), 403(b) 457 plans typically are in danger of failing as retirement
savings vehicles if employees do not have a basic understanding of how their assets should be invested. A recent analysis of over one million 401(k) plan portfolios revealed that 70% of plan participants had portfolios with inappropriate risk or diversification. Common reasons for inappropriate risk or diversification include high money market or stable value concentrations, age inappropriate portfolios (i.e. too conservative for younger employees or too aggressive for older employees), or concentrations in a single asset class. This result confirms the conclusions or previous studies regarding the need for investment education for retirement plan participants. |
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Responsibility |
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The responsibility of preparing for retirement security has been shifted from corporations and
governments to the individual. It has never been more important and necessary, in the history
of our country and financial marketplace, for individuals to have an understanding of how
to invest the very money that will be needed to support a comfortable lifestyle throughout their golden
years. |
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This website is for the exclusive use of subscribing members and corporations and/or governmental entities who sponsor 401(K), 403(B) or 457 plans. If you have an interest in investment education for yourself, please Subscribe Now, or providing it for your employees; please contact us for corporate pricing by using the Contact Us button above.
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