The Reby Way To Wealth Preservation |
Monthly e-mail newsletter |
| April 15, 2010 Vol. V Issue 4 | |
RJR Financial Planning: Diversification and Asset Allocation Risk
The old adage, "Don’t put all your eggs in one basket" applies in many situations, but perhaps nowhere is it more appropriate than the world of investments. That is why our Lifestyle Sustainability Scorecard™ addresses this risk and why it is important we offer methods for minimizing fluctuation to “smooth” out returns. Economic and market conditions change frequently, and each basket of investments – or asset class – reacts to these fluctuations in its own way. As a result, no asset class consistently outperforms the others. When you spread your money among asset classes, you may find that one portion of your portfolio is gaining as another faces a decline*. This can help you moderate risk while still enjoying some of the upside of each asset class. No single asset allocation is right for everyone. As you know, the asset allocation chosen specifically for you is based on your goals; your investment horizon (the amount of time before you’ll need access to your funds); your risk tolerance; and of course, personal circumstances. Remember to contact us should there be any changes in your personal/financial situation or investment objectives.
RJR Client Service: Lifestyle Sustainability Assessment Meetings
Market conditions, life’s events and government policy can increase the risks to your financial plan. These are just some of the reasons why it is so important for us to meet with you on a regular basis. We call these periodic meetings a Lifestyle Sustainability Assessment. This meeting provides us with an opportunity to connect with you to make sure that the plan we have put into place for you continues to be aligned with your current needs and long term goals. Many of life’s experiences – marriage, divorce, home purchase or sale, or a death in the family can have a big impact on your family’s finances. If you do experience changes in your personal situation or investment objectives, please be sure to contact us so that we can re-evaluate your current plan.
RJR & Our Team: Memory Walk for The Alzheimer’s Association
On May 1st, Team Reby will participate in The Alzheimer's Association Memory Walk® in New Milford at Harrybrooke Park. We believe today an estimated 5.3 million Americans are living with Alzheimer’s. In addition, 78 million baby boomers are approaching the age of greatest risk for developing this fatal disease. Many of us have loved ones or know of someone who suffer with or have passed away due to this devastating disease. The Memory Walk® is the nation's largest event to raise awareness and funds for Alzheimer care, support and research – and it calls on volunteers of all ages to become champions in the fight. Since 1989, the Memory Walk® has raised more than $300 million for their cause. The Alzheimer's Association, the leading voluntary health organization in Alzheimer care, support and research, is dedicated to finding prevention methods, treatments and an eventual cure for Alzheimer’s.
*Neither asset allocation nor diversification can guarantee a profit or protect against loss in a declining market. Investing involves risk including the potential loss of principal.
The Reby Way To Wealth Preservation |
Monthly e-mail newsletter |
| March 15, 2010 Vol. V Issue 3 | |
RJR Financial Planning: Sequence of Returns Risk
In previous e-newsletters, we have talked about some of the 15 risks our Lifestyle Sustainability Scorecard™ has uncovered. You can have a good plan in place, make regular contributions to your retirement plans and allocate your savings sensibly, but you may still have the misfortune to experience a market downturn around your retirement date. This is what we call sequence of returns risk. These random “sequences” of return pose a challenge to retirees. Negative returns early in retirement have a more severe impact on the ability of their portfolios to provide lifetime income than those occurring in later years. At RJR & Co. we apply risk reducers for clients in the early years of retirement to help them manage their portfolios and maintain their lifestyles. Two strategies we use to help accomplish this objective are diversification over multiple asset classes and the segregation and earmarking of assets to provide future income streams. These strategies help to manage a portfolio as a hedge against market fluctuations and declines in portfolio value.* We believe that structuring your portfolio with the goal of providing predictable income during the distribution years is far more important than outperforming the market. We also know that risk reduction and return are both important factors in planning for your financial well-being. Please call our office if you would like to discuss strategies that can potentially reduce your risk of retirement ruin.
RJR Client Service: Mailboxes Full of Paperwork!
Beginning in February, we began our transition to the Schwab portfolios discussed in my letter dated February 10th. Unfortunately, because we are in such a highly regulated industry, a lot of required paperwork is being generated to your mailbox. This process will continue through the end of March. If you have any questions, please feel free to contact our office. We hope you are not too inconvenienced by the overload of documents, but it is in the investor/consumer’s best interest.
RJR & Our Team: Paul Kupchok named Vice President, HVSOC
We are proud to announce that Paul Kupchok, Financial Planner, was recently elected Vice President of the Housatonic Valley Sports Organizing Committee 2010 Executive Board. Paul has been involved with HV Sports for five years, and was Treasurer for the last four years. The mission of the HVSOC is to promote, coordinate and host sporting events and activities that have a positive impact on the region's economy and quality of life, and serve as an advocate for the area's sports industry and organizations.
*Investors should understand that all strategies and investments involve risk and there are a number of factors that can impact the principal of a portfolio over a number of years in which the probability of running out of money may increase. Such factors include economic conditions, inflation, interest rate changes, declining value of securities, etc.