Broker Check

Baby Boomers- Investment

It turns out that 4 out of 5 people have more risk in their retirement portfolios than previously realized. Taking the appropriate steps to review your portfolios allocation is critical as you approach retirement. How important is asset allocation to your retirement? A landmark study found that asset allocation accounted for 91.5% of portfolio returns. Only 8.5% of portfolio returns could be attributed to the selection of specific securities 1. The basic concept is to divide your holdings among different asset classes, such as stocks, bonds, and cash alternatives, like money market accounts. These asset classes have different risk profiles and potential returns 2. Built with your end goal in mind, our model portfolios are designed to take the guess work out of portfolio construction and aim to match your risk tolerance with your overall time horizon. Your portfolio is then monitored and adjusted to carefully align your portfolio with your investment goals and concerns. The first step is to capture your unique risk number by taking a 5 minute questionnaire. This will help guide our decision making process.

Employer Sponsored 403(b) Retirement Plans, for K-12 and Career Tech’s, went through sweeping regulation changes in 2009. Now, your Retirement Account is specifically tied to the employer where you last contributed to the account. This means that all Distributions, Exchanges, Transfers, Rollovers and Loans will require your employer’s, or former employer’s, approval. This will require additional paperwork and could potentially delay your transaction and create a stressful situation. Rolling over your current employer plan to a Rollover IRA, after age 59 ½, will eliminate this employer oversight. In addition, Rollover IRA’s offer a significant increase of investment choices, more flexible tax withholding requirements, and the potential to leave your beneficiaries a “Stretch IRA,” allowing RMD’s to occur over their life expectancy. Contact us today to learn how to avoid the 10% tax penalty, understand tax withholding requirements and estimate your Required Minimum Distribution at age 70 ½.


1. Source: Brinson, Singer, and Beebower, “Determinants of Portfolio Performance II: An Update, “Financial Anyalysts Journal, May/June 1999)

2. The return and principal value of stock prices will fluctuate as market conditions change. And shares, when sold, may be worth more or less than their original cost. The market value of a bond will fluctuate with changes in interest rates. As rates rise, the value of existing bonds typically falls. If an investor sells a bond before maturity, it may be worth more or less that the initial purchase price. By holding a bond to maturity investors will receive the interest payments due plus their original principal, barring default by the issuer. Money market funds seek to preserve the value of your investment at $1.00 a share. Money held in money market funds is not insured or guaranteed by the FDIC or any other government agency. It’s possible to lose money by investing in a money market fund. Mutual funds are sold by prospectus. Please consider the charges, risks, expenses, and investment objectives carefully before investing. A prospectus containing this and other information about the investment company can be obtained from your financial professional. Read it carefully before you invest or send money.

3. Investments seeking to achieve higher potential returns also involve a higher degree of risk. Past performance does not guarantee future results. Actual results will vary.

The Junk Drawer Approach to Investing

It's easy to let investments accumulate like old receipts in a junk drawer.

The Real Cost of a Vacation Home

What if instead of buying that home, you invested that money?

The Utility of Sector Investing

Successful sector investing is dependent upon an accurate analysis about when to rotate in and out.