Smartt Wealth Solutions' Financial Blog

Welcome to Smartt Wealth Solutions’ Financial Blog. Please select from the following articles for information on investing, financial planning, wealth management, securities, pension consulting, and portfolio management. Click here to speak with a financial consultant.

The Genius of Rebalancing

 Today we are going to discuss the topic of Rebalancing your portfolio and why it is so important.  I will explain to you how a continuously rebalanced portfolio is one that is constantly buying low and selling high.    “Rebalancing -The process of realigning the weightings of one’s portfolio of assets. Rebalancing involves periodically buying or selling assets in your portfolio to maintain your original desired level of asset allocation.” Rebalancing for Dummies Rebalancing can be very complex and confusing, but I will give a simple example to explain some of the benefits. For example, lets say you have a retirement portfolio with $50,000 invested in stocks, and $50,000 invested in fixed (Bonds and Money Market accounts). This is the 50/50 portfolio which is pretty safe and best for those closer to retirement.  So you let it go 1 year and lets say it was like 2013 and stocks had a great year.   After 1 year you now have $65,000 in stocks and $51,000 in the fixed portion.  You are no longer invested like you wanted to be, and are opening yourself up to way more risk than you originally planned on.   Rebalancing is then needed to sell off what is high, which stocks, and buy into what is low, fixed.  The beautiful thing about it is there is never a time when rebalancing forces you to buy high, or sell low. Why doesnt everyone rebalance? Rebalancing never seems like the right thing to do at the time.  For example in 2008 when stocks were plummeting, rebalancing would have been to sell safe fixed income to buy...

When is it Safe to Get In The Market?

Perhaps one of the biggest challenges that investors face is determining if “right now” is a safe time to invest (meaning not just the present, but any time). What makes it difficult for investors is a twofold issue: first, is a lack of historical knowledge and perspective, and second, their own emotions. Actually, if one looks back on an historical basis, it would have appeared that there was no safe period in which to invest. Investors are really funny in this regard (actually most advisors are really no better). In 2009 investors were in shell shock coming out of the 2008 financial debacle. By 2013 it was really too good and couldn’t last. Last year the market had been going up for five years and that was just too good to be true and something had to come crashing down soon. And this year, there has been volatility and fear mongers from day 1. What investors are looking for is something that does not exist—ever—a “Goldilocks” market! I’m going to take some historical facts and figures to provide some historical context that may enable my clients to feel more comfortable when faced with the ongoing question of “is it safe.” The first issue that investors must confront is that there is no such thing as a “safe” investment and this applies whether funds are invested in equities, bonds, government fixed income, gold, real estate, your mattress or in a coffee can in the back yard. Your money is always subject to one form of risk or another. For a more complete discussion on this subject read Main Street Money...

Smartt Wealth Solutions New Website Launch

Welcome to Smartt Wealth Solutions! We’re excited to announce the launch of our new website with this – our first blog post! Over the next weeks and months to come, we’ll be publishing business- and personal-related financial information, including advice on wealth management, financial planning, and investing. Feel free to join in the conversation by completing the comment form found at the bottom of each post. For further information about our services or to schedule a consultation with a financial advisor, please click here. Thanks for stopping by and we hope to see you again...

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