With many investment categories currently down for the year, now could be an ideal time to rebalance your portfolio. If you’re a casual investor, you may have heard about rebalancing, wondered what it means, and questioned whether it applies to your situation. In this column we will cover the basics of rebalancing and also investigate whether your investments require it.
Steps to take after the recent stock market correction
Four steps if you are feeling nervous about the markets
1. Remember that Short Term Needs and Investing Do Not Mix.
2. Buy a Fixed-Income Ladder.
3. Stop Tracking the Market.
4. IF All Else Fails, Try Something Less Drastic.
You want to settle upon a target investment allocation that under dire circumstances you would not abandon. All of the formulaic approaches may be pointing toward 70 percent in equities, but it’s not the right answer if that level of risk in a very poor market would cause you to sell. That one poor decision could delay retirement by years.
Many of you believe that investing internationally is a poor idea — at least right now. But before you liquidate, just consider: Are you just selling low? By the time everyone is sanguine about the European economy, it may be too late to benefit from the gains.
Going with the herd can hurt you when plunging into a sure-fire investment winner (greed) or fleeing the ongoing collapse of another (fear). A herd mentality can trample your financial future.
When you start a new job or your employer gets acquired, you may need to make retirement plan decisions on the fly. While you probably have the option to change your investment selections at any time, inertia is the most…
In volatile financial times such as these, our natural tendency is to track the ups and down in the stock market. The financial media in its quest for eyeballs favors titillation over analysis. The more rewarding financial concepts can be…
The stock market over the past two weeks has left investors moribund with declines in some indexes exceeding 20 percent from the year’s high — official Bear Market territory. While stocks worldwide took significant hits in the wake of the…
It’s the single largest portfolio holding for many investors. Directing it wisely can make the difference between thriving and struggling in retirement. With the 2011 retirement plan year upon us, how do you go about making fund choices? Some of…