{"id":108593,"date":"2020-02-03T10:48:07","date_gmt":"2020-02-03T10:48:07","guid":{"rendered":"https:\/\/blog.finxter.com\/?p=5964"},"modified":"2020-02-03T10:48:07","modified_gmt":"2020-02-03T10:48:07","slug":"this-one-tool-controls-90-of-your-investment-success","status":"publish","type":"post","link":"https:\/\/sickgaming.net\/blog\/2020\/02\/03\/this-one-tool-controls-90-of-your-investment-success\/","title":{"rendered":"This One Tool Controls 90% of Your Investment Success"},"content":{"rendered":"<p>Do you want to build wealth? <\/p>\n<p>Asset allocation is the process of dividing your portfolio into stocks, bonds, and cash. <a href=\"https:\/\/faculty.mccombs.utexas.edu\/keith.brown\/AFPMaterial\/IbbotsonKaplan2000.pdf\">A famous 1990 study by Kaplan and Ibbotson<\/a> proves that asset allocation is the most important investment decision for your investment success&#8212;far more important than selecting individual securities within the broader asset classes stocks, bonds, and cash.<\/p>\n<p>But what&#8217;s the best asset allocation for you?<\/p>\n<ul>\n<li>20% stocks, 50% bonds, 30% cash<\/li>\n<li>50% stocks, 50% bonds<\/li>\n<li>80% stocks, 10% bonds, 10% cash<\/li>\n<li>100% stocks<\/li>\n<\/ul>\n<p>These different asset allocations have a significant impact on your portfolio risk and return. You must invest most of your time and effort in getting the numbers right.<\/p>\n<p>This is where online tools for asset allocation come into play. They allow you to play with the numbers and see for yourself, based on historical asset class returns, what&#8217;s the most sensible investment decision for you.<\/p>\n<p>The best tool for asset allocation comes from my student Ann who just started out with Python and the Python visualization framework <a href=\"https:\/\/plot.ly\/dash\/\">Dash<\/a>. With Python, Dash, and <a href=\"https:\/\/www.palletsprojects.com\/p\/flask\/\">Flask<\/a>, she has built an <a href=\"https:\/\/www.wealthdashboard.app\/\">incredibly useful tool to help you<\/a>, as an individual investor, save thousands of dollars of fees paid to investment advisors. And the best thing: it&#8217;s 100% free! Check it out.<\/p>\n<p><a href=\"https:\/\/www.wealthdashboard.app\">Play with your asset allocation: https:\/\/www.wealthdashboard.app<\/a><\/p>\n<p>I just recorded a video that leads you through the app.<\/p>\n<figure class=\"wp-block-embed-youtube wp-block-embed is-type-rich is-provider-embed-handler wp-embed-aspect-16-9 wp-has-aspect-ratio\">\n<div class=\"wp-block-embed__wrapper\">\n<div class=\"ast-oembed-container\"><iframe loading=\"lazy\" title=\"[WealthDashboard.app Review] What&#039;s The Best Asset Allocation Tool for Your Portfolio?\" width=\"1100\" height=\"619\" src=\"https:\/\/www.youtube.com\/embed\/0hrGEpiJZto?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe><\/div>\n<\/p><\/div>\n<\/figure>\n<p>Click to watch the video and try out the app. Here&#8217;s a screenshot of the app:<\/p>\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.wealthdashboard.app\/\"><img decoding=\"async\" src=\"https:\/\/blog.finxter.com\/wp-content\/uploads\/2020\/02\/image.png\" alt=\"\" class=\"wp-image-5966\" srcset=\"https:\/\/blog.finxter.com\/wp-content\/uploads\/2020\/02\/image.png 925w, https:\/\/blog.finxter.com\/wp-content\/uploads\/2020\/02\/image-300x294.png 300w, https:\/\/blog.finxter.com\/wp-content\/uploads\/2020\/02\/image-768x751.png 768w\" sizes=\"(max-width: 925px) 100vw, 925px\" \/><\/a><\/figure>\n<p>Here are some features of the app:<\/p>\n<ul>\n<li><strong>Find your risk-optimal portfolio: <\/strong>Divide your money into stocks, bonds, and cash.<\/li>\n<li><strong>Industry leading data: <\/strong>almost 100 years of historical data to backtest different asset allocations.<\/li>\n<li><strong>Rebalancing tool:<\/strong> bring your portfolio back to the asset allocation year over year.<\/li>\n<li><strong>Inflation<\/strong>: see how inflation eats away your return.<\/li>\n<\/ul>\n<p>Click to play with the app: <a href=\"https:\/\/www.wealthdashboard.app\/\">Don&#8217;t miss out and make the most important investment decision in your life now!<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Do you want to build wealth? Asset allocation is the process of dividing your portfolio into stocks, bonds, and cash. A famous 1990 study by Kaplan and Ibbotson proves that asset allocation is the most important investment decision for your investment success&#8212;far more important than selecting individual securities within the broader asset classes stocks, bonds, [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[857],"tags":[73,468,528],"class_list":["post-108593","post","type-post","status-publish","format-standard","hentry","category-python-tut","tag-programming","tag-python","tag-tutorial"],"_links":{"self":[{"href":"https:\/\/sickgaming.net\/blog\/wp-json\/wp\/v2\/posts\/108593","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sickgaming.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sickgaming.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sickgaming.net\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/sickgaming.net\/blog\/wp-json\/wp\/v2\/comments?post=108593"}],"version-history":[{"count":0,"href":"https:\/\/sickgaming.net\/blog\/wp-json\/wp\/v2\/posts\/108593\/revisions"}],"wp:attachment":[{"href":"https:\/\/sickgaming.net\/blog\/wp-json\/wp\/v2\/media?parent=108593"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sickgaming.net\/blog\/wp-json\/wp\/v2\/categories?post=108593"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sickgaming.net\/blog\/wp-json\/wp\/v2\/tags?post=108593"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}