

The Only Asset Allocation Guide You’ll Ever Need
Sep 29, 2025
Discover the art of asset allocation and why it's more crucial than finding the hottest stocks. Learn how compounding works and why average returns can be misleading. Explore the benefits of diversification with non-correlated assets to stabilize your portfolio. Dive into three practical allocation strategies tailored to different risk tolerances. Plus, uncover the surprising advantages of the reverse glide path for retirement planning. Whether you're cautious or adventurous, find a strategy that aligns with your financial goals and peace of mind.
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Average Return Is Not The Actual Return
- Average returns can mislead because volatility changes compounding outcomes.
- A 10% average can hide multi-year swings that materially reduce long-term wealth.
Diversification Is About Offsetting Moves
- Diversification matters because assets that don't move together smooth returns.
- Non- or negative correlation helps a portfolio compound steadily even when pieces wobble.
Allocation Drives Most Portfolio Results
- Asset allocation explains the vast majority of portfolio returns variability.
- Spending one hour to get allocation right can define most of your long-term results.