ASSET DEDICATION: How to Grow Wealthy with the Next Generation of Asset Allocation

by Stephen J. Huxley, J. Burns

The first book to close the

perilous gaps in—and

enhance the performance

of—asset allocation

Asset allocation is one of today’s bestknown

investment approaches. Problem is,

its major precept—that a magic-number,

fixed-percentage asset mix will provide

superior results for investors who have dramatically

different goals and needs—is scientifically

unproven and fundamentally flawed.

Asset Dedication updates the asset allocation

model, outlining a seven-step process

designed to more effectively meet the real

needs of real investors. Showing investors

how to design low-risk portfolios that more

accurately and successfully dedicate assets,

this breakthrough book helps investors fill

in the gaps inherent to asset allocation by

demonstrating:

Techniques for ascertaining the best

asset mix by determining individual

needs and goals

How asset dedication provides

superior protection against inflation

and market risk

Investing strategies for the three

investment life phases—accumulation,

distribution, and transfer

288 pages, Kindle Edition

First published January 12, 2004

Reviews

[Tom · Rating 2 out of 5]

I wanted to like this book. I think it has a kernel of a good idea which is, frankly, very similar to bucketing strategies that people use for retirement spending. But the analyses as presented seemed unconvincing and spotty. And I felt like the advice on how to get ready for retirement was downright dangerous and suggested timing the market to get funds in the right place.

Also, the book focussed only on using Asset Dedication in the decumulation stage of retirement. I felt like the author totally missed out on the possibility that Asset Dedication could also be used as an accumulation tool too (as a way to ease into retirement and reduce the sequence of returns risk).

[Dan · Rating 4 out of 5]

If you are not currently using asset dedication as your means of saving for retirement, and especially if you are not currently using it as your means for managing your funds during retirement, I urge you to learn about it from this book, the inventors of the concept. Our financial adviser brought this method to my attention a bit more than a year ago. We have switched to this method of managing our retirement funds from the standard asset allocation method we had been using. The book makes a compelling case of the advantages of asset dedication over asset allocation.

This book is an easy read, aimed at the layman with little mathematical or financial savvy. If you are already reasonably conversant in the mathematics of finance, reading just a few chapters of this book will allow you to grasp the method and to evaluate for yourself whether or not it makes sense for you.