It's a Balancing Act

You’ve carefully weighed in your own mind how you want your retirement portfolio to look: just the right amount of your assets allocated to stocks versus fixed-income investments. You feel comfortable with the growth/income and risk profile of your portfolio, and you have carefully diversified your investments over all the investment categories, and even within each category. Then, inevitably, the market jumps up or down, and your portfolio is thrown completely off balance.

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What should you do?

First, relax. Your asset allocation guidelines are just that—guidelines. Aim to hit your percentage asset allocation targets over the long run, but be prepared to accept short-run variations caused by normal market cycles that will affect large stocks, small stocks, international stocks, and bonds differently.

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How do I get an evaluation of my present investments to determine the right allocation and criteria??

posted over 2 years ago by Richard from Florida

August 1997 Issue

Getting Started
It's a Balancing Act
You've carefully weighed in your own mind how you want your retirement portfolio to look: just the right amount of your assets allocated to stocks versus fixed-income investments. Then, inevitably, the market jumps up or down, and your portfolio is thrown completely off balance. What should you do?

Features
The Excess Distributions Penalty: Is Moratorium a Bonanza--or Trap?
Feature: While Congress has put a temporary suspension on the so-called "success" excise tax, there is no simple answer as to who it would most benefit.

Features
High-Yield Bond Funds: Plenty of Income, But How Much Added Risk?
Mutual Funds Workshop: A look at high-yield bond funds--their recent success and the accompanying risks.

Features
Seeking Stocks With Momentum: A Look at Relative Strength Measures
Stock Analysis Workshop: Where to find a stock's relative strength and how this momentum indicator is calculated.

Features
Portfolio Rebalancing and the "Problem" With Bull Markets
Portfolio Strategies Workshop: How to keep your portfolio allocations balanced throughout a strong bull market.

Features
An Interview with Donovan J. Paul, Portfolio Manager, INVESCO High Yield Fund
Feature: On the prowl for value issues in the high-yield corporate bond market.

Features
Evaluating the Level of the Market by Examining the Expected Growth Rate
Feature: Current price-earnings ratios can be evaluated by calculating the growth rate in earnings and dividends implied by the market data.

Features
Social Investing Resources
Reference: Organizations, advisory letters, and Web sites that distribute information on social responsibility concerns in investing.

Features
Strategies to Consider for Securities With Large Capital Gains
Retirement Plans: Regardless of what Congress passes in terms of tax relief, investors will face the dilemma of whether to sell and realize a gain or hold onto a stock they no longer like.

Features
The Role of Insurance in Buy-Sell Planning for Businesses: Part 2
Insurance Products: Although circumstances may vary, the focus should be on the primacy of creative business continuation planning, not on life insurance products.

Features
Industry Watch
Quarterly data on the major industry groups as of June 30, 1997.

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August 1997 Issue