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Today on the show we talk about an asset allocation strategy that might actually be

useful to you. You ever gone to a financial advisor and you know we ask you a

bunch of those questions and you fill out the little profile

that gives a numerical score and then we declare to you,

well you are a balanced investor and then we give you

the funding little asset allocation pie chart.

Yeah, useful in some regards, but doesn't make that much sense to most people.

So today, let's start with something that might make a little bit more sense. Welcome to the Radical Personal Finance Podcast. My name is Joshua Sheets and I'm your host. Today I'm

going to pull back some of the mysteries of asset allocation. We're going to talk

about a model that I think will actually be useful and that you'll be able to apply continually throughout your life.

You can apply this to all of your assets no matter where they're located and no matter what type

of assets because it's more a system of thinking than something specific for you to do.

This is one of my major beefs with the financial industry and certainly there is a need and a place for us to use formal asset allocation strategy.

There is definitely a need and a place for it and primarily that is based upon

modern portfolio theory and it's primarily based upon how can we create a portfolio

that will function and meet the desired goals and outcomes

with a minimum level of risk. However, in my experience, it's not intuitive to most people.

And worse than not being intuitive,

...