I want to have balance in my life but why am I hearing about balance with my investments?

What is all this talk about having balance with our investments? If your level of risk meets the criteria for a balanced allocation you will have a portfolio of stocks and bonds where you will have upwards to 65% in stocks and 35% in bonds. If the S&P 500 drops by 20% and we are in a balanced allocation our portfolio will see a decrease in value around 10%. The 35% that are held in bonds act as your hedge when the market drops in value. Now should the market increases by 20% we will see a 10% rate of return with our balanced allocation. The bonds in this case create a lag to the upside. 

If we are a balanced investor we don’t participate fully with a market decline and we don’t participate fully when the market increases in value. 

Should you like a complementary consultation to see if your level of risk matches your current investments please give me a call, Ron Reinstein at the Financial Guys a call at 633-1515 to set up your complementary consultation.