Re-balance Cycle Reminder All MyPlanIQ’s newsletters are archived here.

For regular SAA and TAA portfolios, the next re-balance will be on Monday, June 11, 2018. You can also find the re-balance calendar for 2017 on ‘Dashboard‘ page once you log in.

As a reminder to expert users: advanced portfolios are still re-balanced based on their original re-balance schedules and they are not the same as those used in Strategic and Tactical Asset Allocation (SAA and TAA) portfolios of a plan.

Please note that we now list the next re-balance date on every portfolio page.

Action Plan: Risk Review For Investments

Long term readers might have known that we regularly call for risk review on your investments. In this newsletter, we want to explain in more details. 

Regular action plans

You probably know that your investments need to be periodically reviewed and take some necessary actions. Portfolio rebalance calls for periodic review and change of your portfolio holdings, based on your investing strategies such as those described on our methodology page. However, in addition to rebalance, at a higher level, investors should also conduct risk review on his/her overall investments that might include multiple portfolios and possibly other investments such as real estates. 

So why risk review? There are at least two main reasons, among others: 

  • Your personal financial situation might have changed. For example, now that you are approaching to retirement, you’ll need to be serious to look at your overall investments and adjust your retirement needs, which is a new thing compared with that you are still at work. Another example is that now that you are planning to buy a house or just have to incur some medical cost arising from unexpected health situation. 
  • Another more mundane but less talked about reason is that your investments have changed so much such that your risk tolerance might not be compatible with it anymore. At an individual portfolio level, portfolio rebalance often takes care of this. However, this also requires attention at the overall personal investment level. Examples include your other investments’ value might have dramatically change (like rising real estate property values in some states such as California or Florida). 

Of course, the reasons can also be a combination of the above. 

The risk review should enable you to walk through situations like a possible loss from your existing investments in the near future and see whether you can endure endure it without being forced to change your investment strategies. Specifically, for our  Strategic Asset Allocation (SAA) and Tactical Asset Allocation(TAA) based portfolios: 

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