[Series 65] 46, Asset Allocation Strategies

About this episode

This episode discusses various asset allocation strategies and their implications for investment management.

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - Strategic allocation is a long-term, passive strategy based on a client's policy statement, while tactical allocation involves short-term, active deviations to exploit market opportunities. - A constant ratio plan rebalances a portfolio back to its target percentages when market movements cause the allocation to drift. - A constant dollar plan maintains a specific dollar amount in an asset class, rebalancing by selling when the value exceeds the target and buying when it falls below. - The '100 minus age' rule is a simplified guideline for determining stock allocation that often appears on the exam but ignores individual client factors like risk tolerance. - A key exam distinction is the rebalancing trigger: constant ratio plans are triggered by percentage deviations, while constant dollar plans are triggered by a fixed dollar value. For more free…

People in this episode

Host: Ran Chen

Topics covered

• Asset Allocation
• Investment Strategies
• Portfolio Management
• Exam Preparation
• Financial Planning

Keywords

• Asset Allocation
• Strategic Allocation
• Tactical Allocation
• Rebalancing
• Investment Strategies
• 100 minus age rule
• Constant Ratio Plan
• Constant Dollar Plan

Mentioned in this episode

Organizations: Open Exam Prep, YouTube Channel

Products: EA license, Insurance and Securities licenses, CFP® designation

Places: https://open-exam-prep.com/, https://www.youtube.com/@Open-exam-prep

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