• Outcomes matter.         Trust is earned.

    Outcomes matter.
    Trust is earned.

Have You Reviewed your 401(k) Asset Allocation Recently?

Rebalancing

With recent record market highs, many investors have paid little attention to the asset allocation of their 401(k) accounts. However, whatever your financial situation, you should aim to rebalance your 401(k) on an annual basis. The financial landscape has changed dramatically over the past five years, and it is very likely that these shifts have affected the asset allocation of your portfolio. Recent increases in stock values mean that stocks are likely overrepresented in your current portfolio and rebalancing your 401(k) can help minimize risk as you move closer to retirement.


For example, someone who started 5 years ago with 60% of their portfolio in the S&P 500 and 40% in a US bond index would now see their asset allocation has shifted to 73% stocks and 27% bonds* causing their portfolio to become more aggressive than originally intended. As you move towards retirement, periodic rebalancing of your 401(k) helps you adjust to market fluctuations and better align your portfolio to your current financial situation.

When in doubt, consider investing in a target date fund in order to take advantage of automatic allocation and annual rebalancing based on your age. Rebalancing your portfolio is always important, especially for those investors who are closer to retirement and have less time to neutralize unexpected fluctuations in the markets.


*Hypothetical Portfolio: 60% iShares Core S&P 500 ETF, 40% iShares Core US Aggregate Bond ETF. Performance period: 10/31/12 to 10/31/17 assuming reinvestment of dividends and capital appreciation and net of fees. Source: BlackRock, Inc.

© 2018 Beirne Wealth Consulting Services, LLC (BWC). All rights reserved.


Beirne Wealth Consulting Services, LLC (“BWC”) is a growing, privately owned, SEC Registered Investment Advisor with just over $2 billion in assets under advisement and 22 employees in Connecticut, Pennsylvania and Florida. BWC provides independent, fee-based investment management services and customized financial planning solutions. Our institutional business provides consulting expertise to defined benefit and defined contribution plans, endowments, foundations and non-profit organizations. Our private clients include high net-worth individuals and prominent families, many of whom bring complex wealth management challenges and multigenerational planning needs. For more information, please visit www.beirnewealth.com or give us a call today at 888-231-6372

This article is not intended to be a client‐specific suitability analysis or recommendation, an offer to participate in any investment, or a recommendation to buy, hold or sell securities. Do not use this article as the sole basis for investment decisions. Do not select an asset class or investment product based on performance alone. Consider all relevant information, including your existing portfolio, investment objectives, risk tolerance, liquidity needs and investment time horizon.

This article contains confidential and proprietary information of BWC and is intended for the exclusive use of the parties to whom it was provided by BWC. Its content may not be modified, sold or otherwise provided, in whole or in part, to any other person or entity, without BWC’s prior written permission.

Let's Get Acquainted

We offer a complimentary introductory meeting to describe our services
and to see if our services are right for you.