SUBSCRIBE
Enter your Name and Email address to get
the newsletter delivered to your inbox.
Please include name of person that directed you to my online newsletter so I can thank them personally.
Robert A. Imparato, Jr CFP®
CERTIFIED FINANCIAL PLANNER™ professional
Craig A. Hyldahl CFP®
CERTIFIED FINANCIAL PLANNER™ professional
R.I.C.H. Planning Group, LLC
105 Fieldcrest Avenue, Suite #507
Edison, NJ 08837
Robert: 732-326-5240
Craig: 732-326-5240
Fax: 732-326-5331
Robert: robert@richplanninggroup.com
Craig: craig@richplanninggroup.com
Website: www.richplanninggroup.com
November/December 2017
Your asset mix - bring it back in line
What have your investments been up to lately? Maybe some of them have performed really well. And maybe some took a swan dive. Either way, your asset allocation may now be out of whack.
What can you do about it? Rebalancing helps you restore your asset mix to the percentages of stock, bond and cash alternative investments you originally chose when you set up your account. And if your feelings about risk have changed, rebalancing can help bring your asset allocation in line with your current risk tolerance.
Why rebalance?
You may have selected your investment mix based on an overall financial plan or strategy that you and your financial professional created to fit your investment time frame and risk tolerance. But your asset mix can become unbalanced when one type of investment rises or falls significantly in value. Investments that have made substantial gains may make up a larger portion of your portfolio — and expose you to more risk — than you intended. Or, if some of your assets have dropped in value, your portfolio may not be earning returns that will allow you to pursue your investment goals. Reviewing your investments’ performance can help you determine what steps, if any, you need to take to get your portfolio back on track.
Rebalancing options
One way to rebalance your portfolio is to direct a larger percentage of your new contributions to the asset class that’s currently underperforming.
Another strategy is to sell investments in the asset class that’s doing well and buy investments in the classes that are struggling. While you might be hesitant to sell investments whose values are rising, remembering that you chose your asset allocation to reflect your goals, time horizon and risk tolerance can put rebalancing in perspective.
Consider reviewing investment performance annually, semiannually or even quarterly. That way, you’ll be able to make any changes needed to help ensure that your portfolio continues to reflect your investment objectives.
Rebalancing may have tax consequences if done outside of a tax-favored retirement account.
FINRA Reference FR2017-0620-0124/E
CONTACT US
Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.
Duly registered and licensed financial professionals offer securities through Equitable Advisors, LLC (NY, NY 212-314-4600), member FINRA,SIPC (Equitable Financial Advisors in MI & TN), offer investment advisory products and services through Equitable Advisors, LLC, an SEC-registered investment advisor, and offer annuity and insurance products through Equitable Network, LLC (Equitable Network Insurance Agency of Utah, LLC in UT; Equitable Network of Puerto Rico, Inc.). Equal Opportunity Employer - M/F/D/V. Equitable Advisors and its associates and affiliates do not provide tax, accounting, or legal advice or services.
R.I.C.H. Planning Group, LLC is not owned or operated by Equitable Advisors or Equitable Network. GE-6572038.1 (4/24)(Exp. 4/26)
CFP® and CERTIFIED FINANCIAL PLANNER™ are certification marks owned by the Certified Financial Planner Board of Standards, Inc.
These marks are awarded to individuals who successfully complete the CFP Board's initial and ongoing certification requirements.
R.I.C.H. Planning Group, LLC and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.
The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.