The importance of re-balancing

Steve & Ted
Friday, December 15th

Moneytracker Don Grant talks about asset allocation and growth.

00:08:44

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

Do I support tax reform. It needs to be distributed. Cooling I supported it's fair to everyone. 9713. 33 NSA to even get in the morning congratulations. Too early bird Brian. From yes he has a yes man kind of steam roller. Christmas Phil's seat each end up hot chocolate and mr. fifteen dollar value from Steven to edit. It's more than a Friday morning Brian thank you Portland State. Now three big things. Countries hit stumbling blocks and plan to overhaul the tax code with some more information on the shooting the fifteen year old girl in north Wichita. Pizza Hut offers reward and killing of delivery driver. 101000. Dollars big big thing you received death. And we get this morning the gasoline prices at around 2198. Gallon. Not seen too much out there just a couple of stations front teeth a center who better to seventeen I saw that. Near Kellogg in Broadway traffic updates from cape and it's as radio. I'm just chambers sunny today with a high of 52 degrees cleared tonight the overnight low thirties to. Saturday sunny and warmer tomorrow hi sixty. One now partly cloudy northwest wind at eight. Miles per hour and 32 degrees. Kick in assess whether brought you by the monarch. Voted one of the best suburban bars in America by the urban reviews. Located at 579 with Douglas in historical note the monarch. It's afternoon. On the news hour around the noon hour I will be at the Taco Bell and Kellogg in green rich with 98 dollars cash. It's Christmas cash from Taco Bell and able award debt to at some random little lucky person in the drive through lane. We've been doing this as we do every Christmas Taco Bell was told Christmas. Actually two recurring thing on Libya Kellogg. And green which in the noon hour today. Kellogg is opening a store in New York that it hopes will become a place for millennial to hang out and eat cereal. Cereal sales have been soft. And Kellogg has tried to reach out to those in their twenties and thirties before such as pitching cereal as a late night snack in advance. Now they're trying this new approach. Visitors of Kellogg's NYC cafe pay up to 750 for a bowl of fruit loops are brought to play got to be kidding me I can beat top we sea salt and thirty other ingredients Poland. Anyway it's a smack in the evening I don't think it's too fattening or anything of a little bowl of cereal. Little mock you kidding me fruit loops not brutally I would. Like that. And Christian basically your sugar rice sitting in middle it's like anti now I don't exactly I don't is that no. I they Dow NASDAQ and S&P all fell at the end of the day despite intraday records Thursday. After a record intra day the Dow Jones Industrial Average did things to downside down 75 points point 4005 I'm NASDAQ Composite down nineteen. At 6856. ESP 500 downtown at 2652. On the Dow Jones Industrial Average was on Disney as the number one performer nearly 3% on the day. Disney buying fox film and TV units for fifteen billion dollars 21 century fox at a new high. And retailers came under some pressure despite some good news of the latest numbers retail sales jumped more than forecast of rotted. Man climbing zero point 8%. For the day we did see some of the names that just meats seeds and Nordstrom's pulling back on the hood here stock exchange ultimately Fox News Channel. One is issues for business licenses for the State's upcoming illegal marijuana market. Recreational pot sales for adults start in California January 1. Joining the State's long running medical sales they've had additional marijuana. In California for quite awhile. Delta Airlines has picked Europe's Airbus over Boeing. Or a huge order of your jets ouch. Delta says order 100 Airbus eighth there three tournament neo jets with a sticker price of twelve point seven billion dollars and take an option to buy another 100 jet to deal that. Chicago based Boeing had hoped to land at this time Delta's taking. Airbus on hurts thank you delta. Appreciate Beverly you're buying American victory we asked for Delta Airlines next time we need to flatter which to ask you about that. 651 now Stephen Ted. How many bonds in your portfolio. Don grant CFP the bunny tracker with a us this morning going on. Remember back in 2009 at the low point of the recession when you had your portfolio readjusted to 60% stocks and 40% bonds. Well you may have been more weighted in stocks into the recession hit. So you sold some of them off and waded into the bond market looking for safety if you'd done that and haven't readjusted your asset allocation. You would probably now have an 81%. Stock in 17%. Bond portfolio. Now I reach that number by checking the growth of the S&P 500 which is the stock market essentially first is the growth of the Barclays bond index. Well if your set it and forget it type of investor you're probably way overdue for a rebalancing. Asset allocations are not to be taken lightly viewing your certified financial planner develop a strategy to handle your appetite for risk and your need for growth. A number of factors including your future in company's current income total assets and contribution levels. Help us determine in which asset classes you should invest. So would one asset class grows more than another you'll need to rebalance if you wanna stay on track with your allocation. Let's take a very simple example with 100000 dollars you determine that say 50% of your money needs to be in the stock market for growth. And the other 50% is in California real estate investments. Let's say that the real estate boom pitcher investment and grossed 25%. But the stock market grows just 5%. At the end of the year your stocks are 52000. In the real estate is at 62500. You no longer have a 5050 allocation. Rebalancing. Would mean that you sell enough of the real estate and buy some more equities to rebalance the portfolio back to 5050. Rebalancing is no guarantee of better returns but it does keep you on track if in the following year the real estate market were to crash 40%. And you had not re balanced. You would have had been in a position to lose much more. Did if you had rebounds. And of course if you have any questions you give me a call the number 63422. 22 and I thank you Don today is national ugly Christmas sweater day I don't have one. This is going to be an international event now occurring on the third Friday December the celebration gives holiday lovers worldwide a chance to win their ugly Christmas sweaters. Into what he's fourteen they partner with say the children in their make the role to with a splitter campaign make the world better with a sweaters and campaign. You can now help children across rural by wearing an ugly sweater on December 18 and encouraging others to go on line. And donate. I don't think I have an ugly Christmas sweater. I have an ugly sweater but I don't have a Christmas that was part of our Christmas festivities yesterday April company luncheon yeah the one that you know. I mean I was not paying any attention. I would thank in my bag injuries Qaeda. You're. You were on your exit plan our. Blown out there you know you'll. There about six people are up there. I actually was concentrating on my chicken yeah yeah that's right yeah at that point eight intentions that are just about up your nose and greater there. Again cater by crowds and different cabinet there. Who takes care that he wanted to by Kevin by the way once opposed with the Marconi award. You know that you and I are both mentioned someone united proposed I don't know are very nice as. John Newman versatile on pole to picture and it apparently is on now who knows. Are we had a great day it left. A police Saturday. Coming up 655 now coming up at 7 o'clock. McCain has this morning news the Stevenson a look at all of today's youth congress getting us some stumbling blocks. For that tax overhaul bills seated at the morning on K and assess.
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