Some say that Asset Dedication is the new Asset Allocation. According to Stephen J. Huxley and J. Brent Burns, asset dedication was the result of the evolution of asset allocation. It is meant to end the procrustean approach in classifying the investment profiles and approaches of every client or investor.

Brokerage firms usually classify investors as “Aggressive”, “Moderate”, or “Conservative”. After classifying which character the investor is, a recommended blend of XYZ is now put into play. But how sure are we that this investor has the proper blend of stocks, bonds, and cash?

Asset Dedication could be completely described as a case where patients visits their respective optometrists. Optometrists, after doing some testing procedures, will give you your same eye sight reading. Unlike brokerage firms who have their own investment questionnaires aimed at providing you with the right mix of stocks, bonds, and cash, they will, I personally doubt, give you the same blend of XYZ.

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Banks nowadays are facing hard times, as they find it more and more difficult to raise cash to use on their investments. This situation has already been foreseen by interest-rate derivatives traders. However, the worse is yet to come and these same traders are increasing their bets that cash will become increasingly difficult to come by.

Let’s take a look at the spread (or difference) between the three-month dollar London interbank offered rate (Libor) and the three-month forward-traded overnight index swap rate. What we see here is a higher than similar spreads that are to expire this month, as revealed by Credit Suisse Holdings Inc.

What the forward movement of Libor tells you is the market is apprehensive about the current conditions, and that things might first get increasingly worse before things can start to get better. There will always be funding pressure that sticks out like a sore thumb, unless and until banks begin to clean up their balance sheets and obtained additional financing, which is about the hardest dilemma banks are facing today.

Derivatives trades reveal that amid the seemingly easing global markets condition, the worst is yet to come as far as banks are concerned after incurring severe losses and writedowns reaching up to $387 billion from mortgage-related securities counting from the beginning of 2007.

Lehman Brothers Holdings Inc. has, during the past couple of days, incurred losses by as much as 8 percent on concern that it will take outside financing to shore up the company’s balance sheet.

Almost anyone can call themselves a financial planner. All it needs is an understanding of the rules of finance, and some understanding as to where to apply them. But is that all? The Certified Financial Planner (CFP) Board of Standards has understood the importance of giving quality financial assistance to people, and have instituted the CFP Certificate.

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A CFP certificate that is conferred on a planner ensures that your Financial Planner has the skills that you expect of them, and also makes sure that they behave in a professional manner. In order to earn and maintain their certificate, those holding it must prove that they are keeping updated with the latest trends, and are pursuing various courses of educating themselves on a regular basis.

The Certificate also lays down Standards of Professional Conduct that the individual must employ in order to maintain their certification. There are over 37,000 CFP’s that you can choose from at the website given above. The Board provides for a complaint system in case one of it’s professionals does not live uptot the technical or ethical standards.

So set your mind at rest when you want to find a financial planner for yourself. Find one that is professionally certified and increase the chances of getting quality advice.

Even though how morbid it is to be discussed, one of the tools an individual can utilize in ensuring his wealth is preserved and passed on the right people after he leaves, is called estate planning. Estate planning entails the use of a will, living trusts, endowments, and other tools even a common person like you could access. Time could be an advantage for a person who uses estate planning as the more time he has to formulate a plan; the more smoothly it could go out. Taxes are also factored in making estate plans as this usually allows the heirs of the assets to carry fewer burdens in shouldering the taxes attached to the inherited asset. Estate planning is simply, planning for the inevitable.

Ever since I’ve been using Yodlee’s Moneycenter, I haven’t been able to get enough of it. I never imagined that I could have all my accounts, and investments from various companies in one place

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Lots of you will be quick to point out that services like Money and Quicken have been doing just that. But there are three major differences here. First of all, Yodlee is online. So no hang ups about backups, and your information is available to you anywhere in the world, with just a simple internet connection.

Second, Yodlee actually accesses your accounts with your Banking UserName and Passwords, and updates your account with the latest transactions, and your investments, with the latest prices.

Finally, it’s free - A deal by any standards for cheapskates like me, who accumulate wealth by simply not spending it! It’s free, and it does a better job than most commercial software.

I admit that the name is against it though. I mean who would take a name like ‘Yodlee’ seriously? But the truth is, that several banking corporations including the Bank of America, use Yodlee’s technology to provide several of their own servcies.

My guess is that if Yodlee’s data is compromised, then all the banking information in the world is at risk anyway, and my own personal misfortune is going to be the last thing on the thief’s mind.

Finally retirement! You and your spouse might be cruising already in the Caribbean and enjoying the beach sun. Your kids might be working right now and have their own respective families to go home to. All you look into now is estate planning and finally preparing for the most awaited retirement of your life.

Asset classes should be purely fixed income and risk adverse right now. You may not require your portfolio to have a maximum growth potential. Preparing your will is really not that morbid as we all would eventually need to leave this world. We might as well leave the world in order. Your medical expenses might be considerably higher right now as you are more prone to medical procedures and more medication. Never forget to take care of your health and your mental well-being.

Enjoy Retirement and eat well and healthy. After all, all work and no play make Jack a dull boy.

Retirement is within reach and for some, working as an option is already playing in their minds. If you did your job well during your powerful youthful days, your kids are now in college because of your college plans and you are now scouting for Caribbean Cruises or laying the plans of constructing your dream home.

Asset Allocation should be more conservative at this point of time as there is less time to recuperate losses from untimely investment mistakes. If you were not prudent during your youth days, maybe it’s time to be more aggressive on your asset classes. Bonds and Fixed Income investments should be the mix of half of your portfolio. Be more careful in screening for your stock issues and trading options or futures should be considerably less this time.

Careful investing in this stage of life could help you reach your financial goals a lot more smoothly. Be more prudent in your asset classes as you cannot afford to loss anymore any capital as there is very little time to recuperate it just in case. Play your cards right and make working as an option possible!

This is the time for you to make the big bucks if you were very prudent in your finances back then. At this time, probably you are earning as much as 5 times more than when you first began working. This trend would continue to grow exponentially over the next several years.

Along with marriage and kids, here come long-term financial commitments like mortgage on a house and car/s, insurance for your estate and family, and educational plans for your kids.

In this case, you should already start building a large emergency fund. It should be liquid and easy to access in cases of emergencies. Manage to keep 6 month’s worth of salary to 1 year depending on your preferences.

This time is where your disposable income was a lot bigger than before. But with kids, be prudent and a bit more conservative in your portfolio. You should be drifting very slowly from aggressive positions to stable and sound ones. Try to slowly accumulate your fixed income as you go nearer to retirement.

This period of time is also the period where you should be boosting your monthly contributions to your IRA or 401k. The name of the game in your 30s is wise and prudent savings. Make sure you visit and clear things up with your financial advisor or banker about what you like and expect.

Ah finally: School is over and the world is your oyster. Career opportunities are spread before you like the proverbial red carpet. Your youthful passion makes you want to make your mark, earn enough money to move out of your parent’s home, buy a car, explore the world, look very fashionable, and get a life partner.

Although this stage is the best stage to spend, it is also the best stage to save. Avoid debt as much as possible in this stage. Get a health and disability insurance coverage. You will never know when an unfortunate event will happen to you. If you do happen to be in great shape, do not worry as insurance would not cost you that much.

Watch your debt. All the youthful exuberance can burn a hole in your finances, and the fire burns faster than your capacity to earn money. You run at risk of getting buried by credit card debt. Use debt with prudence.

If you started investing at a much earlier stage, you are now on a head start from your peers. You hold investing knowledge and experience that still some of your peers are still starting to learn and master now. If you do happen to be those “some”, it is still not late to start. Make monthly contributions to an equity fund. It is always said that stocks perform better than any other investment instrument out there in time. Time is an ally; let it help you not burden you in the long run.

If you manage to get disciplined in this age bracket, you’re in one, healthy wealth ride!

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Offshore banking refers to a bank outside the residence of the depositor in a typically lower or no tax jurisdiction that gives the depositor both financial and legal advantages.

Offshore banking is commonly associated with money laundering and organized crime, however, corporations and private individuals could legally benefit from it in terms of taxation and privacy.

Offshore banks, especially those banks situated in Switzerland, Luxembourg, and Andorra, at some cases, does not requires you to have a name on your account instead of a number. With that level of privacy, tracing money in that person is virtually impossible.

Offshore banks do not only provide you with that added privacy and security. It also offers its clients with investment instruments less taxed and regulated and therefore provides returns to outperform their American counterparts.

Trade any capital markets with an additional level of privacy anywhere. From stocks, bonds, futures, or any other derivative or instrument you know, give your investments an additional hedge against currency depreciation and inflation by Danish Multi-Currency Accounts. With this additional level of privacy, you could now trade the markets freely without those local regulations.

Denmark for example, is not only one of the best nations to shop for foreign investments, but also it is continually ranked to be one of the “safest places to bank” by Moody’s. Danish taxation is also significantly lower than its neighbouring counterparts.

Offshore banking has its numerous advantages and it’s really a big deal ignoring them. But, you have to take into consideration your local reporting requirements about your offshore banking activities. It is best that you consult a tax attorney first before engaging in one.