.

Rebalancing Your Retirement Accounts

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 a while. 

The asset allocation for your retirement account came from assessment of your personal situation – your age, marital status, retirement goals – and strategies to protect you from the fluctuations of the market. Being what they are, fluctuations don’t usually balance out – which means you 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. A Certified Financial Planner can help you review your 401(k) or other defined contribution account and evaluate how best to bring it back to an appropriate asset allocation. 

Rebalancing is a core component that Certified Financial Planners bring to their clients. They can also help you with other accounts that you may have elsewhere. 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 get in gear! Review and discuss your portfolios with a financial professional, and cruise into 2013 with a fresh perspective on your finances. 

FINANCIAL FACTS 

Few Folks Equal Big Bucks – Five percent of the U.S. population accounts for 49.5 percent of all health care expenditures. Ten percent of the population accounts for 65.2 percent of all health care expenditures (source: National Institute for Health Care Management, BTN Research). 

Tell Congress – Forty-seven percent of 1,038 Americans surveyed in July 2012 said the most important investment decision they had made during their adult life was to “live within my means” (source: PNC Financial Services Group, BTN Research). 

Exports – For the first nine months of 2012, the U.S. exported $220 billion of goods and services to Canada, 10 percent more than the $200 billion exported to the 27 nations of the European Union (source: Department of Commerce).

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

Boards

More »
Got a question? Something on your mind? Talk to your community, directly.
Note Article
Just a short thought to get the word out quickly about anything in your neighborhood.
Share something with your neighbors.What's on your mind?What's on your mind?Make an announcement, speak your mind, or sell somethingPost something
See more »