15. JAN. 2016
You Can Build an “Optimal” Portfolio without Salespeople
To invest well, you do not need salespeople, books, or courses.
You simply need to buy an appropriate mix of securities at minimal cost. P3 helps you determine that proper mix and the best means to achieve it.
Allocate Assets Well
About 90% of the rate of return of any given portfolio is determined by the allocation of assets between the 3 major investment categories - stocks, bonds, and cash. Many people have an asset allocation that is either too conservative or too aggressive. P3 takes all of your inputs, including answers to questions regarding your attitude toward risk, and then factors in mathematical characteristics of the markets to derive a mix of assets that fits your profile. Additionally, you can change data at will to see expected outcomes of almost any investment combination.
Select the Right Securities
Should you use stocks and bonds, or funds? If funds, should you use mutual funds or exchange traded funds? Is it better to buy indexes that match the market or use active management and try to beat it? What about options, futures, commodities, and other alternatives? Without bias, P3 explains the pros and cons of all the different types of securities you might consider. P3 also models them in projections and provides lists of specific items that might make sense in an alternate portfolio.
Avoid Costly Mistakes
It is quite hard to find "winners" in the investment arena; some theorists argue that it is impossible, aside from luck. However, it is easy to spot losers; investments with poor risk-return characteristics. Some are inappropriate due to structure. Some entail excessive fees. Some are harmful because insiders keep the good stuff in a particular category and then prod salespeople to push the bad stuff onto retail investors. P3 identifies bad securities and strategies so you can avoid them, or sell them if currently owned.
Additional "Invest Well" topics for which P3 assists the average investor, because one does not need a Wall Broker to make smart decisions, they just need P3.