Investing Demystified

chapter 8

Incorporating other assets

This book is about making portfolio management straightforward and efficient. The overall message is simple:

• Recognise that you are a rational investor.
• Create a very simple investment portfolio consisting of minimal risk assets and the broadest possible equity index, perhaps adding other government and corporate bonds.
• Think about your risk profile and how it may change over time and as the world around you changes. Adjust your portfolio accordingly.
• Implement the portfolio in a way that is tax efficient. The suggested portfolio will already be extremely liquid, which is great. Get help on taxes if you need it.
• Make sure you purchase the portfolio in the most cost-efficient way. This is worth a bit ...