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Tom Meaglia, ChFC®, AEP®,

CLU®, CRPC®, MSFS

Chartered Financial Consultant

Investment Advisor Representative

Chartered Retirement Planning Counselor

CA Insurance Lic. #0567507

 

Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750

 

Toll Free: 800-386-3700

Bus:         909-593-6105

Cell:         818-681-8600

Fax:         909-593-6120

 

Email: tom@meagliafinancialconsulting.com

Website: www.meagliafinancialconsulting.com

January/February 2023

Rebalancing in Retirement

Rebalancing in Retirement

While you’re making contributions to your retirement plan(s) consider rebalancing your investments annually to maintain your chosen asset allocation.* It’s easy to do simply by contributing less to the investment class that’s forging ahead and more to the class that’s lagging.


A Different Process
Once you’re retired and no longer contributing to your plan, the process of rebalancing can be more complicated. Instead of allocating more or less money to one asset class, you’ll have to sell investments to reach your desired allocation. Typically, if you’re taking required minimum distributions from your tax-deferred retirement accounts, rebalancing can be part of that process.


Why Rebalance?
Rebalancing your portfolio brings your asset allocation back in line with the investment mix you originally chose. Rebalancing may be even more important in retirement than it is while you’re accumulating assets. That’s because fluctuations in your allocations matter less due to your longer time frame for recouping losses. Once you’re retired, however, your goal will be to maintain your savings to ensure you’ll have enough money to last throughout your retirement.


Reduce Risk
Taking too much risk with your retirement savings may result in losses that can leave you without enough income for the lifestyle you envisioned. Rebalancing your accounts may help reduce the risk that your portfolio won’t be able to recover from a drop in value.


Control Volatility
Holding investments that are prone to wide market swings can be detrimental to your savings in retirement. If you have the option, selling off any volatile securities you’re holding can help keep retirement accounts on a more even keel.


What You Can Do
There are several steps you can take to preserve your retirement funds and make rebalancing easier. Your financial professional can help you create strategies for maximizing your retirement income.


*Asset allocation won’t guarantee a profit or ensure against a loss but may help reduce volatility in your portfolio.


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Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
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