This is the third and final installment of the “What to Expect” series.
Monitor, Update, Re-balance
Now that your portfolio has been aligned with your target portfolio, I will continue to monitor how your investments are doing. I will check regularly to see that you are not drifting too far out of alignment. Re-balancing will occur semi-annually, if needed, or more frequently, if circumstances warrant.
During the course of the year, cash inflows and outflows will be used to keep you in line with your allocation, for example, if you are planning to take $20,000 out each year, I will liquidate securities for you in a fashion that allows you to stay in balance. On the flip side, if you are investing, investments that maintain your allocation will be targeted with cash inflows. If you are nearing retirement, we may start with bond mutual funds and later begin to build a bond ladder, at the appropriate time. If you are in retirement, we will plan ahead for cash withdrawals, to ensure that your “retirement paycheck” is created in the most efficient manner.
During your spring check up, we will review your investments to see if there is any reason we should change our target allocations, Investment Policy Statement, or the securities you are holding.
Each quarter, you will receive a statement showing your asset values and performance. Of course, you are always able to log in and see your investments real time, via the NetxInvestor website. There is a link also from our client center page. At this point our client service calendar takes over, as we service your needs on an ongoing basis.