Rebalancing Your Retirement Accounts
The combination of the defined contribution plan, payroll deduction and automatic enrollment makes it easy for workers to put their retirement planning on cruise control. The changing speeds of investment earnings and the life changes that take you in and out of the fast lane, however, mean you need to adjust that cruising speed once in awhile.
The asset allocation for your retirement account came from assessment of your personal situation – your age, marital status, retirement goals – and strategies designed to protect you from the fluctuations of the market. Being what they are, fluctuations don’t usually balance out – which means you may have to periodically rebalance your investments to get them back to the asset allocation that fits your investment strategy.
Sometimes that means tough decisions – like selling part of a position that has become too large a portion of your portfolio, even though it has performed well. Emotional investing decisions can be as detrimental as the out of sight, out of mind approach. We can help you review your 401(k) or other defined contribution account and evaluate strategies to bring it back to an appropriate asset allocation.
Rebalancing is a core component of the value we bring to our clients. We can also help you with accounts held away from our firm. All portfolios benefit from regular review to determine if rebalancing or other changes should be made based on investment performance or your personal situation.
So stay in the driver’s seat! Feel free to call you Centennial CO Financial Planner, Jordan Dechtman, any time at 303-741-9772 or email me at Jordan@JordanDechtman.com to discuss your portfolios, and cruise into 2010 with a fresh perspective on your finances.