Retirement Plan "Trade Alert"

Over the years, we have had many requests from clients who are participants in their employer sponsored retirement plan of how they can construct a conservative balanced portfolio for their 401(k) account. While there is no such thing as a “one size fits all” portfolio strategy, this balanced portfolio offers diversification of assets class and objectives.  Don't see your employer on the list, but you would like to have this service?  Just click here: "Trade Alert" to let us know.  

How does this Trade Alert E-mail Service work?  "Alerts" are sent via a link in an email.  They are generated ONLY AFTER our existing client accounts have been acted upon, and it is up to the disretion of the participant to act (or not act) upon the "Alerts".  Our goal is obtain an overall net positive total returns in all economic environments using fund alternatives found in your 401(k).  The allocations to our conservative balanced portfolio include:

1: Cash Money Market funds: (Unallocated) The purpose of cash (money market) funds is for liquidity to be employed to seize future opportunities. Return is a minor aspect — both figuratively and literally! One of the challenges now is the low yield environment (0% to 0.10%) for money market cash positions.

2 : Bond funds :(Target Portfolio Allocation 40%)  Most plans only offer a bond index and not bond sectors for some reason. Because our clients employ more sectors, your account may underperform.

3 : Stock funds :(Target Portfolio Allocation 60%)  We are not stock picking here. Most plans only offer a stock indexes, but few stock sector alternatives for some reason. Since we favor some sectors over other sectors out of the broad equity market, your performance may underperform our clients. 

"Example Trade Alert" will range from (1) "0% stock and 0% bond" (= 100% in money market), (2) 100% stock and 0% bond" (= either be (a) 100% in stock or (b) 60% stock  (Target Portfolio Allocation) and 40% money market), (3) "0% stock and 100% bond" (= (a) 100% in bond or (b) 40% bond  (Target Portfolio Allocation) and 60% money market) and (4) "100% stock and 100% bond" (= (a) 100% in bond or (b) 100% in stock or (c) Target Portfolio Allocation of 60% stock and 40% bond.) 


This service is not to be construed as trading advice, but is educational in nature and hopefully informative.  Investment segment allocations can be altered based upon a person’s risk appetite, investment experience, or financial position.  You may want to tweak this portfolio management to your unique circumstances so it is more suitable to your circumstances. Every investment advisor will have his or her own preferences in vehicles and strategies.  Do not be surprised by critical reviews - this is just one approach that we feel is of interest to a broad spectrum of clients - everyone is different.  It is not intended to be a financial plan, is just a piece or your overall plan that should include real estate, estate and tax planning, tax planning vehicles, insurance (life, health long term care), and distribution planning.  Before you follow anything we do with our portfolio, we suggest you check first with your other professional advisors who are licensed, bonded, trained and insured in their speciality.

PLEASE CONTACT US IF YOU HAVE ANY QUESTIONS WITH THIS INFORMATION.