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, April 22, 2019. You can also find the re-balance calendar for 2019 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.

The Risk Of Stock Investing

There are many misconceptions in stock investing. The very first one is that stocks are risky (we even classify stocks as a risky asset class). Many investors, even the experienced ones, believe that you have to have good skills to invest in stocks. On the other hand, some people believe that if Warren Buffett can beat the market and deliver outstanding returns, so can they, or at least some other professional investors like good fund managers. In this newsletter, we will try to clarify some of these issues. 

The definition of risk 

We are often confused with the notion of risk. First, virtually everyone agrees that stocks are risky. But what exactly does this mean?

A commonly accepted definition for risk is the volatility of daily returns, or daily return standard deviation. For example, since 2000, the S&P 500 index fund VFINX has an average daily standard deviation 19%, compared with 5% of total bond index fund VBMFX. 

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