Frequently Asked Questions
Have a question not answered below?
See the About Us page; contact us via email or our social networks. We'd be happy to answer any questions.
Does Simple Allocation own any of the stocks, or use the model?
Yes. Please see our About Us page for a full disclosure.
How to I get my 401K plan added to the allocation plans page?
See the page on adding allocation plans.
How does Simple Allocation compare to buy-and-hold?
See this blog post.
What details will you share about the model?
See this link for details.
Is there a minimum balance required to use Simple Allocation?
Please see this page on minimum balances, and how trading fees affect returns.
Should I use stop orders with my allocation plan?
Please see this page on stop orders.
Does the model include the results of stop orders?
Yes. The modeled results are a reflection of how we would have traded, including stop orders. If you look at the allocation charts in the plans you can see the results of stop being hit causing the total percent invested to decrease during the allocation period.
If I sell on a stop order, when do I reinvest?
The model assumes you will not reinvest until the next allocation cycle.
In the allocations there are several securities that are all similar. Why?
The model just allocates the security list provided; it does not try to determine which sectors are represented and diversify. See the portfolio allocation section of the Investing Competencies page for more information.
What is "total modeled theoretical gain"?
That is the total gain the model achieved, for the period modeled. We say "theoretical" because these gains were not achieved by us, or anyone. The results are result of testing the current model against historical results. The gain is NOT the average gain, but the gain that when compounded produces the stated return. See this blog post for a discussion on the difference between an arithmetic average gain, and a geometric average gain.