If there is a universal investment ideal, it is this: Every investor wants to buy low and sell high. What if we told you there is a disciplined process for doing just that, and staying on track toward your personal goals while you’re at it? Guess what? There is. It’s called rebalancing.
Rebalancing: How It Works
Now that 2017 is a wrap, and we are well into 2018, we wanted to share one of the best presents you can bestow on yourself and your loved ones - the gift of proper preparation for rest of the year. Want to get a jump-start on it? Here are 10 financial best practices to energize your wealth management efforts.
As the 2017 market analyses have begun rolling in, so too have the reports of long and strong positive performance from almost every corner of the market. One Wall Street Journal (WSJ) year-end report summarized: “Sure, U.S. stocks had solid gains, but investors who bought copper, Argentine stocks, and lumber futures would have also ended the year with hefty profits.”
Remember, market volatility, in all its nerve-wracking forms, is one of the key factors that drive the long-term expected returns you’re seeking to capture by investing. With high volatility comes higher expected future returns. With low volatility, you get to go about your day more calmly, but you must also accept diminished expectations about your future net worth.
It’s hard to believe, but another year is almost behind us. With January just around the corner, now is a great time to review various items you may want to consider as you get set to enter 2018. Many of the IRS publications referenced below are for tax year 2016. Changes are not anticipated when 2017 guides are published.