The Market is Up – That Means It’s Time to Rebalance :: Wamhoff Financial & Accounting

The Market is Up – That Means It’s Time to Rebalance

Another month has passed, and not only are we enjoying Spring’s rising temperatures, we’re also enjoying the continued rise of the stock market. It’s hard to believe that the numbers keep creeping up, but while they do, we consider this a prime time to rebalance your portfolios. Bob_W

What does balancing and rebalancing your portfolio mean? Well, in many cases, we look to have a 60/40 balance of stocks to fixed assets. When the market is high, that means your portfolio is very likely at 70/30. When it gets to that level, it’s a good idea to take some growth off the table and rebalance to 60/40. That’s what we’re doing for clients right now. We’re pulling back slightly on the market, and putting that money back in fixed assets.

While the growth of the market continues to be great news for investors, we also know that there are many mixed signs and uncertainties out there. Wamhoff’s approach has always been that as long as you are well diversified in alternative investments outside the market, we can participate in these great market rallies while keeping a portion of your investments in things like REIT’s and annuities with living benefit guarantees which are not dependent on the ups, and eventual downs, of the market. The vast majority of the alternative investments we offer clients continue to do very well.

Why do we preach the value of diversification, rebalancing, and active money management? You’ve probably heard me say that I believe all of my clients will live until they are 95, and it’s my job to help them have income that entire time. So if they are relying on the banks – with their savings accounts or CD’s – it’s less likely that will happen. Think about it. Current interest rates are hovering around .4%. With $100,000 in an account, that means you’ll only make $400 for the entire year.

If you, or a friend or family member, are concerned about how your portfolio may be balanced, or are interested in finding out more about alternative investments outside the stock market, give us a call. We’re here to help you to 95 and beyond!

Stay healthy, wealthy and wise…and certainly, stay tuned.


Bob Wamhoff | Wamhoff Financial Planning & Accounting