Equity markets remained volatile during 2015’s 4th quarter, moving substantially higher to erase the significant losses from Q3. While most of the economic conditions were unchanged from the prior quarter, markets flipped to the “glass-half-full” mindset. Continue reading
The three R’s of retirement plan maintenance:
Review, Rebalance, and Reallocate
Remember when you were growing up and you got your first pet? You were so excited and you promised to take good care of it – and hopefully you did. In the same way, your retirement plan account needs your attention to stay healthy. “Set it and forget it” just doesn’t work. Without proper attention, your account, like your pet, could suffer malnutrition and not be adequate for your future needs. It could get sick so it doesn’t perform like you want it to. Or it could get hurt if it’s subjected to too much risk.
At some point in time you might have heard a familiar phrase used among financial advisers when they talk about building a portfolio, “Don’t put all your eggs in one basket.” Many times they are referring to the importance of having an asset allocation strategy.
An asset allocation strategy should represent the risk an investor is willing to take by investing monies ‘eggs’ in the various asset classes ‘baskets’ for a desired potential return. Continue reading