Regardless of how nice your car is when you drive it off the lot, you’re going to have to give it some love and attention in order to get from Point A to Point B consistently and without stress.  If you forget to refill the gas tank, you’re not going anywhere.  Don’t want to waste money on new brakes?  Hello fender bender!  Slack on your oil changes—goodbye engine!

The same concept applies to your retirement accounts:

  • If you have been invested in the market during its almost 9 year bull market run, you likely have some gains from equities.
  • As a result, you may be more exposed to the stock market than you should be (i.e. taking more investment risk than you might want).

As an example, a portfolio that was 70% stocks and 30% bonds at the beginning of this bull market in March of 2009, assuming no reinvestment or rebalancing, would be closer to 90% stocks and 10% bonds today. This is due to the growth of stocks over that time period. In terms of risk, a 90/10 mix portfolio would have lost over 33% in the 2008 financial crisis (yikes!).

How would your retirement account perform if there was another pullback in the market?

  • We have sophisticated tools that can “test drive” your accounts to see if your current portfolio is in line with your investment objectives and risk tolerance.

While SimpliFi is constantly monitoring and rebalancing our client’s retirement portfolios, retirement assets in company plans like your 401(k), are often left in a “set it, and forget it” mode.  This is fine in an up market, but in a market downturn you could be subjecting yourself to unnecessary risk.

Does your retirement account need a tune up? Give the SimpliFi team a call today and we’ll help you find out.


This information is provided for general information purposes only and is not intended to provide specific investment advice. The information in the articles should not be relied on for tax reporting, accounting, or valuation purposes. Past performance is not a guarantee of future performance. It is not possible to invest directly in an index.

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