The article outlines the steps to portfolio building, starting with the necessity of defining portfolio goals and working through the steps to find risk level and personal risk tolerance.
“Vanguard ETF Portfolio Strategies: A Proven Approach” (http://remonsy.com/
After this chart, drawdown is explained and how it helps determine personal risk tolerance is discussed. Another chart is used to show all the drawdowns for the Russell 3000 Index since 1979.
The next chart shows the low value of investment mixtures during the worst drop for each. This advice is given so investors understand downturns that can happen, and they feel comfortable with their investors hitting these possible low points.
The article continues by displaying drawdown and recovery time for portfolio mixtures, the portfolio return needed for reaching investment goals, how to determine optimum asset allocation, an explanation of world allocation model, and the Capital Asset Pricing Model.
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About Remonsy and Tom Vaughan:
Tom Vaughan began his financial advisory career in 1987 at a Wall Street-based firm. In 1986, at the age of 23, he founded money management firm Retirement Capital Strategies. He is now taking his investment expertise from more than 26 years as an investment advisor with more than $300 million under management and over 6,000 financial plans created to launch Remonsy ETF Network. Remonsy investment advice focused around ETF funds will be delivered to the growing number of do-it-yourself investors through daily tips, free newsletters and premium products.