Creating your financial plan is just the beginning

We'll continue to partner with you to ensure your plan, and your investment, stay focused on what's most important to you

Asset allocation is just a starting point. Your portfolio needs to be monitored because markets, the economic outlook, and your personal situation can change. A professionally managed portfolio gives you this oversight.

Remember, not all types of stocks and bonds have performed the same way in all types of market and economic conditions. It can be challenging for the average investor to know which investments to focus on throughout a full economic cycle. And it can be equally as challenging to know if or when you should shift your focus or make adjustments to your portfolio's investments.

Rebalancing, or periodically adjusting the mix of stocks, bonds, and short-term investments in your portfolio to make sure your asset allocation continues to reflect your feelings about risk and your goals, an important part of maintaining your portfolio. You'll want to conduct ongoing reviews of your personal and financial situation to determine if anything's changed and whether those changes warrant adjusting your investments.

When left untouched an asset allocation can drift over time due to fluctuating markets. In this hypothetical example, the portfolio’s allocation started off with 70% stocks and 30% bonds. However, 6 months later, as market fluctuated, this asset allocation changed to 80% stocks and 20% bonds.

Consider a hypothetical portfolio of 70% stocks and 30% bonds. When it's created, this mix makes sense for this particular investor. But fast forward 6 months. Stocks have appreciated significantly while bonds have fallen, so that mix is now closer to 80% stocks and 20% bonds. The investor is now taking on more risk than originally intended. The longer this investor goes without rebalancing, the more the risk may increase or decrease

Reallocating, or adjusting the amount of risk within each asset class in your portfolio, is an important part of managing your investments in response to changes in the economy. Remember, not all types of stocks and bonds perform the same way in all market and economic conditions.

While the example below is hypothetical, it provides some idea of how different types of investments perform differently as the economy moves from late-cycle into the early onset of recession. Allocation decisions may vary even within one phase of the business cycle as conditions change. As an investor managing your own portfolio, you'll want to be mindful of these relationships not just during a recession, but during periods of economic expansion as well.

A demonstration of how an investor might reallocate a portfolio during different phases of the business cycle. For instance, in the late cycle phase, one might favor investment grade bonds, commodities and treasury inflation protected securities over stocks or high yield bonds. Moving through the cycle, as the economy shows signs of early recession, one might favor treasury inflation protected securities and investment grade bonds over stocks, high yield bonds or commodities.

Financial planning is part art, part science—and always personal and evolving. Your dedicated advisor will review your family's financial plan regularly to help you feel confident that you're on track, so you can focus more on what matters to you most.

Ongoing support


Whether you have questions about the markets, your investments, or your goals, your advisor can help provide perspective.


Strategic reviews


At least once a year, your advisor will initiate an in-depth strategic review to help you uncover opportunities and make any necessary adjustments to the way you're invested.


Keeping you informed


You'll receive exclusive communications from your investment management team, designed to keep you informed about market events, account activity, and trades we make on your behalf.

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