Wanted to give a quick update from our Investment Committee’s recent meeting, as we begin the process of rebalancing all client IRA (tax-deferred) accounts:

  • This is our 2020 major rebalance, with the goal being to target back to the original risk allocation (think stocks to bonds ratio), essentially taking gains off the table to sell high/buy low.
  • We don’t have to worry about any tax impact as these trades are inside the IRAs.
  • Our strategy continues to move some funds from growth to value, as we had a pretty sizeable growth tilt the past few years (which paid off nicely). We are still moderately bullish in the market, but much less than prior years so feel it’s smart to “de-risk” slightly to a more neutral position between growth and value.
  • Our committee identified a few managers we wanted to swap based on our overall strategy of keeping fees as low as possible and always striving to potentially enhance returns.
  • In our bonds (i.e. fixed income), we swapped to more conservative steady managers in our growth models- the thought being, if we are taking a lot of risk in stocks, the little we have in fixed income should be boring and steady and not risky in case we have a market pullback.

I always strive to keep clients, and potential clients, abreast of how we think and act on behalf of our clients. We love what we do and it’s an honor to be able to serve you everyday. I hope this helps!

P.S.- We all know 2020 is going to be crazy with the election talks consuming the air waves- please try to spend time disconnecting and with your loved ones, and let us deal with the crazy!

Leave a Comment