Grove O’Rourke here. I’m the fictional hero of Top Producer, which is getting great reviews in the press. Norb and I are flying to Atlanta, right now, so this post comes from 30,000 feet above sea level thanks to a new service called “Go Go.”

How cool is that?

There’s an insert in USA Today that says 78 percent of those surveyed are confident their “asset allocation is the right one at this time.” I wonder what process investors used to deploy their assets.

Did they invest based on their cash flow needs? Or did they listen to financial advisers talk about standard deviations, Monte Carlo simulations, and the other inscrutable trademarks of Wall Street’s asset allocation process?

I believe it’s important to identify cash flow needs first: tuition, house improvements, or even capital calls. Then, invest safely through fixed income instruments to fund those requirements. Any cash that remains can be invested in risk assets like equities. And there’s nothing fictional about my advice.

Have a great week.

Grove O’Rourke

About the author

Norb Vonnegut wrote 178 articles on this blog.

Do you ever feel the financial news makes no sense? Do stories leave you with more questions than answers? I created Acrimoney to discuss Wall Street’s behavior behind the headlines. As a veteran of a wealth management business that exceeded $1 billion in assets, I offer insight into the people and the “doings” that affect your money. I’ll start the discussion. But I hope you’ll jump in and say what you think.

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