The stock market has posted really strong gains this year; in recent weeks it’s hit all-time highs. We don’t believe in timing the market, but we do believe in sticking with an asset allocation that’s consistent with our risk tolerance. Right now, the gains in our stock position (individual stocks & stock mutual funds) have thrown us out of whack – we’re more exposed to the stock market than we like to be.
The coolest thing in rebalancing to a pre-determined asset allocation is that it forces us to sell high and buy low! Do we always hit the top & the bottom? Of course not. But we didn’t get creamed in 2008, we stayed in the market without having to sell as it declined, and were forced (by our allocation) to buy near the bottom & ride it up. Now we’re selling out some of those gains to pull back our stock position and invest in cash like CD’s and in short- to medium-term bonds.
Many of you have expressed interest over the past year in working with us on aspects of your financial plan and the allocation of your investments – including your 401(k), 403(b), 457 or similar plan.
Do you have a plan with Specific, Measurable, Achievable, Results-focused, and Time- bound goals?
- If you’re under 50, you should be contributing as much as possible to your retirement account(s), you should know how you’re going to pay for kids’ education (if any), and whatever other medium-term SMART goals you have.
- If you’re 50+, it’s time to start looking at SMART goals for retirement. How much do you need, when, what you need to do differently in the interim (or maybe continue doing right)?
- No matter your age, you need an asset allocation that fits your risk tolerance. At the top of the market is when big losses happen to those who are taking too much risk. Get a check-up!
Call, email or go to https://www.vcita.com/v/clarefazackerley/online_scheduling?staff_id=2ab67fc4#/services to schedule an appointment. We do have time to get started while we’re still in Fort Collins, so get in touch soon. We can get yours started before we meet! Just ask for a list of items to begin assembling.
Talk to you soon.