How to make an investment plan

[bochap]

Hi,

I chanced upon this book. This is just another guide.
The Standard & Poor's Guide to the Perfect Portfolio: 5 Steps to Allocate Your Assets and Ensure a Lifetime of Wealth... By Michael Kaye

From page 18, the "universal rules" are:
. You should not have more than 75% in any asset class.
. You should have at least 5% in short term cash instruments.
. You should allocate at least 5% to international securities.
. You should have exposure to at least three asset classes.
. You should hold no more than 10% in an individual stock.
. You should have at least 25% in stocks.
. You should have at least 10% in bonds.
. You should consider rebalancing if an asset class moves at least 5% from its initial weighting.

Just sharing.
Ultimately, I guess it is still "to each his own".

frankly, these rules will be hard to apply if you can only start with $10,000. and not many have that kind of money too..

[Hulumas]

[quote="bochap"][quote="momo"]Hi,

I chanced upon this book. This is just another guide.
[url=http://books.google.com.sg/books?id=vwC2MaPGnG0C&printsec=frontcover&source=gbs_v2_summary_r&cad=0#v=onepage&q=&f=false]The Standard & Poor's Guide to the Perfect Portfolio: 5 Steps to Allocate Your Assets and Ensure a Lifetime of Wealth... By Michael Kaye[/url]

From page 18, the "universal rules" are:
. You should not have more than 75% in any asset class.
. You should have at least 5% in short term cash instruments.
. You should allocate at least 5% to international securities.
. You should have exposure to at least three asset classes.
. You should hold no more than 10% in an individual stock.
. You should have at least 25% in stocks.
. You should have at least 10% in bonds.
. You should consider rebalancing if an asset class moves at least 5% from its initial weighting.

Just sharing. :)
Ultimately, I guess it is still "to each his own".[/quote]

frankly, these rules will be hard to apply if you can only start with $10,000. and not many have that kind of money too..[/quote]
"Smartly suka-suka" construct your appropriately diversified portfolio in the first place. Then invest accordingly.