Market Trends Transitions

Markets keep changing. Here’s how to stay in the stay-rich game and hold on to your assets in any market cycle.

Key Takeaways

  • Wealth preservation is easily to the No. 1 concern among successful investors
  • There are three major areas to monitor when looking at your portfolio—cash flow, diversification and interest-rate risk.
  • The No.1 mistake that we see in portfolios is that they’re not goal-based.  

You know we’ve just come off a great year for the stock market, a great 5-year cycle really. The markets are up 170 percent since their bottom in March 2009. That means if you had $1 million in March of 2009–and stayed full invested–that $1 million would be worth approximately $2.7 million today.

Well, sometimes market changes cause us to go into transitions relative to our investments. This happens especially to pre-retirees who are looking to retire within the next five years. It also happens to current retirees who have gone through volatile market cycles in the last 10 to 15 years. They’ve now recovered back to where they need to be and don’t want to fare poorly through the next bad cycle.

Prepare for the next downturn before it happens

I’m not saying the market’s going down anytime soon. We just want to make sure you’re planning for future. If you’re periodically updating and rebalancing your investments to meet your income and savings needs, then you’re in great shape. But, if you haven’t looked at your portfolio in a while and aren’t certain that you’re still on the right track, then consider this: Recent statistics show that successful investors’ number one concernby faris their wealth preservation. That means staying in the stay-rich game and making sure you don’t lose your assets.

So, there are three major areas to consider when you look at your portfolio:

1. Do you have “buckets” set aside for your cash flow needs over the next three to five years?

2. Is your stock portfolio still well-diversified? With the big run up in the market, are you now too heavy in certain sectors and too light in others?

3. Do you have investments vulnerable to interest-rate risk? As the economy and job picture continue to improve, the Fed may start raising interest rates. This will negatively affect any of your investments that are sensitive to rising interest rates.

Avoiding the No.1 portfolio mistake

The No.1 mistake that we see in portfolios is that they’re not goal-based. They’re not goal-based in terms of what you need for cash flow. So the income’s not going to be there when there’s a bad market cycle.


If you haven’t reviewed your portfolio or financial goals in a while, then seek out a financial counselor or a wealth manager to help you. If you don’t have a trusted professional in this arena, you can certainly call us. We have a second-opinion service. We’ll look at your complete financial picture and give you a second opinion about where you are now, where you need to go, and what’s happening with your particular estate. We’ll make sure you’re well-structured for the next downturn, whenever that occurs–hopefully, a long way off in the future. Why not be prepared?

So, until next time, enjoy. Gary  | 1-800-480-7913


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