Are You Taking Full Advantage of Market Conditions?

//Are You Taking Full Advantage of Market Conditions?

Are You Taking Full Advantage of Market Conditions?

For Mark Roberts’ Use: Have you heard the good news? Our economy is doing quite well at the moment, as we enjoy the third-longest stretch of market expansions in US history. In fact, we’re only two years away from it becoming the longest one ever!

In the stock market, the S&P is performing well, with the ratio at its second-highest level since World War 2.

Unemployment is also back down to pre-2007 levels, indicating good things about the direction of our economy.

These things are all a cause for celebration, but they should also prompt you to do some thinking about your retirement savings strategy. We know that re-evaluating your decisions every few years helps you to stay on top of current economic conditions, so ask yourself two questions:

  • Are you taking advantage of current conditions to your best advantage?
  • Are you feeling so confident that you’re actually taking on too much risk?

Some people might fall into the first category, while others fall into the second. The greater point, though, is to develop awareness on how your strategy responds to changing conditions.

Diversification. Diversifying your portfolio is important under any economic conditions. Have you rebalanced your portfolio in the past few years?

Debt. Sometimes we see people become too confident during periods of prosperity, taking on too much debt. Remember to keep your lifestyle fairly steady, and sock away extra money in your retirement accounts instead. It’s better to retire with “too much” money (not that such a thing exists) than to retire deep in debt.

Emergency funds. If you’re doing well right now, remember that anything can happen. Resist the urge to spend all of your extra cash, and establish an emergency fund now while it’s relatively easy to do so.

Even though our economy is relatively strong, you should still act as an active participant in your financial planning. Call us to schedule an appointment, and together we will review your priorities and decisions, and make recommendations to help you continue to succeed.

By |2017-09-25T10:19:24+00:00September 18th, 2017|The Economy|0 Comments

About the Author:

In addition to managing clients’ money and giving investment and diversification advice, Mark offers something that “the other guys” don’t - a unique approach to Retirement Tax Strategies and distribution. Time and time again, Mark meets with new clients who tell him they have a great relationship with their financial advisor but have never been offered information on this kind of approach to securing their financial futures. Mark has taken this feedback to heart and works tirelessly to ensure that his strategies focus on taxes and distribution. Mark started selling insurance for a major insurance company right out of high school to help put himself through college. After graduating with a degree in finance, he dove into estate planning on the financial side to set himself apart from other financial advisors. However, as changes were made to estate tax laws over time, Mark shifted his focus to income tax strategies. Mark’s philosophy is “the blue prints are more important than the wall paper or carpet.” The wall paper and carpet represent products like investments and insurance policies, whereas the blue prints represent the strategies. Once strategies that truly fit the client’s needs are put in place, our focus can shift to providing you with the right products. According to Mark, “It doesn’t matter what carpet we use if the walls are not in the right place.” Our approach to money management is designed to generate the largest alpha (quality) with the lowest standard deviation and beta (risk). By doing this, we help provide clients with the highest return on the lowest risk. Generating income for our retirees is also very important. Because withdrawing money from your portfolio hurts the account rather than helping it, our goal is to design income strategies to harm the portfolio the least making the money last longer.

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