7Twelve A Diversified Investment Portfolio

A proven way to put together a portfolio that enhances performance and reduces riskProfessor Craig Israelsen of Brigham Young University is an important voice in the area of asset allocation. The reason? He keeps things simple. Now, in 7Twelve, he shows you how to do the same, and demonstrates how his approach to investing can help you grow your money as well as protect it.7Twelve outlines a multi-asset balanced portfolio that is a logical starting point when assembling a portfolio-either as the blueprint for the entire portfolio or as a significant building block. Page by page, he will show you how to create a balanced portfolio utilizing multiple asset classes to enhance performance and reduce risk. Discusses how the 7Twelve portfolio includes seven core asset classes and utilizes twelve specific mutual funds or exchange traded funds Details the tax efficiency of this specific investment approach Shows you how to use the 7Twelve portfolio as a pre-retirement accumulation portfolio or a post-retirement distribution portfolioIf you want to build a well-balanced, multi-asset portfolio, 7Twelve is the book for you.

CRAIG L. ISRAELSEN, PhD, is an Associate Professor at Brigham Young University (BYU) in Provo, Utah, where he teaches personal and family finance to over 1,200 students each year. He holds a PhD in family resource management from BYU and received a BS in agribusiness and an MS in agricultural economics from Utah State University. Prior to teaching at BYU, Israelsen was on the faculty of the University of Missouri–Columbia for fourteen years where he taught personal and family finance in the Department of Personal Financial Planning.

Foreword	p. xi
Preface	p. xiii
Acknowledgments	p. xvii
A Recipe for Success	p. 1
The 7Twelve Recipe	p. 2
Salsa Anyone?	p. 4
U.S. Stock	p. 7
Non-U.S. Stock	p. 12
Real Estate	p. 15
Resources	p. 16
U.S. Bonds	p. 19
Non-U.S. Bonds	p. 21
Cash	p. 22
The Complete Recipe	p. 23
Lining up the Ingredients	p. 29
A Recipe that goes Waaay Back	p. 32
Getting Better and Better	p. 34
The More Ingredients, the Better	p. 37
Measuring Volatility and Risk	p. 38
Diversification by Design	p. 40
Diversification Requires Depth and Breadth	p. 48
Growth of Money	p. 53
Why Measure Growth of Money?	p. 54
Expect ups and Downs	p. 56
Combining Ingredients that Zig and Zag	p. 63
Getting Close to Zero	p. 64
Finding Assets that Play Nicely Together	p. 65
Don't Forget Broad Diversification	p. 68
Quantifying Correlation	p. 73
Stirring the Mix	p. 79
Rebalancing versus Buy-and -Hold	p. 80
Choosing a Schedule	p. 86
Adjusting the Secret Sauce	p. 89
The Saving Years and the Spending Years	p. 91
How Portfolio Mechanics Change in the Golden Years	p. 94
Allocation Age versus Chronological Age	p. 96
Life Stage Portfolios	p. 98
How Long will My Nest Egg Last?	p. 105
Survival of the Fittest	p. 106
Reviewing the Nest Egg Guidelines	p. 113
Should I Tilt toward Value or Growth?	p. 117
Does it make a Difference?	p. 118
The 7Twelve's Value Bias	p. 125
Should I Jump in or Let the Pot Simmer?	p. 129
To Stir or not to Stir?	p. 130
The 7Twelve Works Both Ways	p. 133
But if you Still can't Decideà	p. 135
A Better 401(K)	p. 137
Switching the Default	p. 137
Introducing Target Date Funds and Balanced Funds	p. 138
The 7Twelve Portfolio Approach	p. 139
Determining your Lifecycle Phase	p. 144
Mismatch 101	p. 147
The Problem of Undersaving	p. 151
Chasing Returns is a Loser's Game	p. 152
Add Plenty of Patience, Perspective, and Persistence	p. 156
Of Stocks, Bonds, and Risk	p. 159
A Tale of Two Time Frames	p. 159
The "Diversification" Premium	p. 166
Assembling your Portfolio	p. 171
3 Secrets + 4 Principles = 7Twelve Perfection	p. 181
About the Author	p. 187
Index	p. 189
Table of Contents provided by Ingram. All Rights Reserved.

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7Twelve A Diversified Investment Portfolio with a Plan

Summary

Author Biography

Table of Contents

Supplemental Materials