Part II – The Intrinsic Value Wealth Creation Pyramid

Introduction

 

The Intrinsic Value Wealth Creation Pyramid

Intrinsic Value Wealth Creation Pyramid

The Four Main Sources of Wealth (Historically)

Stock Market

 

Real Estate

 

Entrepreneurship

 

Multiple Sources of Income

Asset Allocation

As a starting point for determining your asset allocation, I recommend that you use the American Association of Individual Investors (AAII) Asset Allocation Models to help you determine an appropriate asset allocation for your particular needs and circumstances. Remember, though, that there is a lot of subjective judgement that goes into the asset allocation decision. You will have to use your best judgement when making this determination.

You must carefully consider the appropriate asset allocation of your portfolio that is suitable for your own unique circumstances, including your tolerance for risk. Please remember that these asset allocation guidelines are only estimates of what may be appropriate for you. We cannot guarantee that the asset allocation determined by the asset allocation guidelines in this section of the book will be appropriate for you. You must make this determination on your own with the help of your financial advisor, accountant, attorney, and other advisors.

How You Should Use the Intrinsic Value Wealth Creation Pyramid

 

International Stocks

 

A Note on Corporate Bonds, Government & Federal Agency Securities, and Cash