Comments on: Personal Finance, Part 11 — Your Personal Required Investment Earnings Rate http://alephblog.com/2008/01/26/personal-finance-part-11-%e2%80%94-your-personal-required-investment-earnings-rate/ Helping Institutions and Ordinary People Invest Better by Focusing on Risk Control Mon, 15 Mar 2010 13:59:17 -0400 http://wordpress.org/?v=2.8.4 hourly 1 By: David Merkel http://alephblog.com/2008/01/26/personal-finance-part-11-%e2%80%94-your-personal-required-investment-earnings-rate/comment-page-1/#comment-16661 David Merkel Tue, 29 Jan 2008 16:09:12 +0000 http://alephblog.com/2008/01/26/personal-finance-part-11-%e2%80%94-your-personal-required-investment-earnings-rate/#comment-16661 Yes, it does sound like absolute benchmarking. When I started the piece,I wasn't intending on getting there, but yes, it is where both personal investors and DB plan sponsors should get to. Asset allocation should reflect the absolute benchmark. The relative benchmark is what plan sponsors and personal investors should use in evaluating the managers filling specific roles in one's asset allocation. Yes, it does sound like absolute benchmarking. When I started the piece,I wasn’t intending on getting there, but yes, it is where both personal investors and DB plan sponsors should get to.

Asset allocation should reflect the absolute benchmark. The relative benchmark is what plan sponsors and personal investors should use in evaluating the managers filling specific roles in one’s asset allocation.

]]> By: Bill aka NO DooDahs! http://alephblog.com/2008/01/26/personal-finance-part-11-%e2%80%94-your-personal-required-investment-earnings-rate/comment-page-1/#comment-16650 Bill aka NO DooDahs! Sun, 27 Jan 2008 15:03:01 +0000 http://alephblog.com/2008/01/26/personal-finance-part-11-%e2%80%94-your-personal-required-investment-earnings-rate/#comment-16650 Gee, sounds a lot like absolute benchmarking. http://www.billakanodoodahs.com/2008/01/relative-and-absolute-benchmarking/ Gee, sounds a lot like absolute benchmarking.

http://www.billakanodoodahs.com/2008/01/relative-and-absolute-benchmarking/

]]> By: David Merkel http://alephblog.com/2008/01/26/personal-finance-part-11-%e2%80%94-your-personal-required-investment-earnings-rate/comment-page-1/#comment-16648 David Merkel Sun, 27 Jan 2008 07:00:27 +0000 http://alephblog.com/2008/01/26/personal-finance-part-11-%e2%80%94-your-personal-required-investment-earnings-rate/#comment-16648 Note: this is not a license to be too conservative in your asset allocation; that way leads to ruin as well. Be sure that your asset allocation follows Buffett's dictum above. Those that don't take reasonable risks usually do badly. Note: this is not a license to be too conservative in your asset allocation; that way leads to ruin as well. Be sure that your asset allocation follows Buffett’s dictum above.

Those that don’t take reasonable risks usually do badly.

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