Portfolio Analysis

Individual Life Insurance

Do you know what type of investor you are? More importantly, do you know what type of investor you should be? Depending on your age, marital and family status, potential retirement age and risk aversion, your investments can – and should – greatly vary.

Rebalancing is bringing your portfolio back to your original asset allocation mix. This is necessary because over time some of your investments may become out of alignment with your investment goals. You'll find that some of your investments will grow faster than others. By rebalancing, you'll ensure that your portfolio does not overemphasize one or more asset categories, and you'll return your portfolio to a comfortable level of risk.

“Everything in life changes, including your investment strategy. Depending on where you are in your life, you may find you want ultimate security, or a bit more risk. There’s a right balance for everyone.”-Bob Poletti

To explore portfolio analysis further, contact Insurance Planning Group at 610-254-0611 today.

A Word About Risk Aversion

Let’s start with a simple question: You have saved for a big vacation. Two weeks before your departure, you lose your job. Do you:

The question is: What does this have to do with investing? No, the real question is: How much risk can you handle?

Risk is a fact of life for every investor. Stock markets plunge. Companies go bankrupt. Presidential elections are subject to recounts – by hand. The fact of the matter is, you can probably handle more risk than you think.

Risk tolerance has more to do with time than temperament. The more time you have to make up for short- term losses, the more aggressive you can be with your investments. One way to help reduce risk of the volatility of investing is to increase the time you hold on to your portfolio.