Outline
      •   Risk Tolerance and Asset Allocation
      •   Behavioral Factors
      •   Economic Outlook
      •   Stock Market Outlook
      •   Sample Portfolio vs. Alternative Portfolio
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                                                         © Altfest Personal Wealth Management, 2014
             Steps to Construct an Investment Portfolio
      •   Become familiar with investment alternatives
      •   Choose a passive or active approach
           •  If you choose passive, the other steps are easier
      •   Select mutual funds or individual stock and bonds
           •  It’s ok to have a blend
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                                                         © Altfest Personal Wealth Management, 2014
                     Consider Alternative Investments
      •   Real estate
           – Not correlated
           – Private vs. public
      •   Commodities
           – Inflation hedge
           – Gas
      •   Hedge funds – Hedge like
           – Do mutual funds
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                                                          © Altfest Personal Wealth Management, 2014
                         Investigate Individual Issues
      •   Passive
           – Vanguard, Fidelity, Schwab, ETF
      •   Active
           – Look at Morningstar rankings
           – Don’t buy hot funds
           – Make sure portfolio manager is still there
           – Look for consistency of returns
                • High energy component can make funds look good
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                                                          © Altfest Personal Wealth Management, 2014
                       Establish Your Risk Tolerance
      •  Umbrella Index 
           – Inverse of stock vs. bond
           – 20%, 33%, 50%, 67%, 80%, no umbrella
      •  Know yourself
           – Don’t have a different risk tolerance for the current marketplace
      •  How risky are you?
           – Conservative
           – Moderate
           – Aggressive
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                                                        © Altfest Personal Wealth Management, 2014