Key Takeaway
Asset allocation — how you divide your portfolio among stocks, bonds, and other asset classes — determines over 90% of your long-term returns. Get the allocation right, implement with low-cost index funds, rebalance annually, and your portfolio will take care of itself.
The Review
Rick Ferri's All About Asset Allocation is the most practical guide to building a diversified investment portfolio using low-cost index funds. Ferri, a CFA and former Marine Corps fighter pilot, covers the theory and practice of asset allocation in precise, actionable terms: how to determine your risk tolerance, which asset classes to include, how much to allocate to each, and when to rebalance. The book includes model portfolios for different life stages and risk profiles, making it a complete implementation guide for the passive investor.
Book Details
All About Asset Allocation by Richard A. Ferri
Published
2005
Pages
352
Rating
4.4/5
Copies Sold
200,000+
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