ING Brief March 2005
|The beginning of the year is an excellent time to take stock of your stock - as well as your bonds, cash and other investments. If you havent recently reviewed the investment mix in your SFDCP account, it is a good time to monitor whether your asset allocation is in balance with our investment goals.
For example, lets say you worked with your financial adviser to decide how much risk you are willing to take and together, you designed an investment mix (i.e., asset allocation). On January 1, 2004 you allocated your SFDCP portfolio as follows: 40% in stock investments; 35% in bond investments; 25% in cash investments. On January 1, 2005 its likely that if you counted up your total dollar contributions for last year, added any investment growth and deleted any losses, you probably would not have the same 40%/35%/25% split (allocation) which you originally started.
Whats the difference? While your eggs may not be all in one basket, you may have too many (or too few) in different baskets. This could mean that your money isnt working for you the same way that you originally planned. Consequently, you may have missed out on opportunities in one investment type or that you may have taken on more risk than you planned.
Rebalancing your investments periodically helps to keep your investment mix in line with your goals and risk tolerance. If you havent rebalanced your SFDCP account in a while, or if your goals have changed, its a good time to give your representative, Meghan Doherty, a call. You can reach her at 415-364-2017.
Securities are offered through ING Financial Advisers, LLC (Member SIPC), 151 Farmington Avenue, Hartford, CT 06156, or other Broker-Dealers with which it has selling agreements. C05-0114-004 (02/2005)