CJH Financial Planning

Sharing a quote I came across on Facebook. And it is super relevant, especially for parents.  If you want your child to be successful in life, then you have to first focus on your personal development. Learning how to invest, starting a business, marketing great ideas, building a network, growing wealth, managing time well, and finding balance in life are all important aspect of personal development. Only then could you impart your wisdom and experience to your child and empower them to lead successful lives. CJH

Tip #1 - Getting Your Asset Allocation Right Many investors over-emphasize the importance of picking the right company or bond or country to invest in. There is an equally large group that thinks the correct timing of the markets is the key factor to making profits. Well, they are wrong. According to research, security selection and market timing are not the key contributors to investment profits. In fact these two combined only accounts to less than 5% of investment performance! No wonder most people lose money investing. The most critical factor that contributes to over 90% of investment performance is Asset Allocation . Placing your money in a diversified portfolio across different asset class in the right proportions is the key to investment profits. We have some backtested results (see chart below) showing the difference in performance between 4 of our company's well-allocated portfolios and relevant benchmarks. You will see that the our portfolios performed be