Beyond Asset Allocation

Beyond Asset Allocation

A long-term focus requires going beyond asset allocation (where some financial planners focus too much) and applying an equally strategic and rigorous perspective to the selection specifics within each asset class. Successful financial planning turns on specific choices. Not all high-yield (“junk”) debt performs the same; similarly, one “global equity” fund can do well while another in the same category can under-perform badly. Indeed some research shows that the “value” or “growth” labels attached to many funds and portfolios can bear little connection to actual holdings and investment styles. This is where Margin of Safety can yield immense benefit and is a smart way to pursue both financial security and financial peace of mind.