Why Rebalance?

You probably know that your investment portfolio is being rebalanced on a regular basis, but you might not know why. Is it for higher returns? For maintaining the agreed-upon balance of investments that is in your risk tolerance comfort zone? Does rebalancing help manage portfolio risk?

The answer to the above is “yes,” “yes,” and […]

Portfolio Performance Defined

You receive portfolio performance reports every three months—a form of transparency that financial planning professionals introduced at a time when the typical brokerage statement was impossible to decipher. But it might surprise you to know that most professionals think there is actually little value to any quarterly performance information, other than to reassure you […]

Election Impact on your Portfolio

By now, most voters have made up their mind about who they want to serve as their next President. But what can they look forward to, from an investment and tax standpoint, if their candidate wins or loses? How will the election affect their portfolio and future net worth?

Let’s look at the least predictable […]

Other Dimensions of Risk

When it comes to investing in the stock market, the risk that everybody talks about is the ups and particularly the downs, the bearish periods when the market falls dramatically and keeps falling for months or even years. (Think: 2000-2002 or 2008)

The real damage isn’t the fall itself, but the fact that many […]

Losses Do Matter

 

Everybody who told us that the steep market drops earlier this month wouldn’t last can rightly claim they’re right. When the S&P 500 was down 7.4% during a two-week selloff, there was no way to know whether we’d have to endure more of the same. Staying the course turned out to be exactly the […]