Newsletter Archive

Marotta On Money - May 18 Newsletter

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Asset Allocation

Your Asset Allocation Should Be Priceless (05-17-2015)

Rebalancing from stocks into bonds reduces your returns on average since bonds have a lower average return. But there are decades of very choppy markets where even rebalancing an allocation of stocks and bonds can boost returns. We group our top level asset categories into bonds and stocks. We call the bond group "stability" and we call the stock group "appreciation. " I did a study which simulated a typical 30 year retirement portfolio of $1 million.
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Upcoming Events

05/25

Memorial Day

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05/25

Virginia's Sales Tax Holiday: Hurricane and Emergency Preparedness Equipment.

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In The News

Radio Interview: Employment Tips for Recent Grads

David John Marotta and Megan Russell were interviewed on radio 1070 WINA's Schilling Show discussing ways recent graduates can make themselves more attractive to employers in today's tough job market. Here are four ways to market your major: Define your major -- don't just list it as a bullet point and move on.
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Investment Strategies Part 4: Don't Rebalance at the Sector Level (06-15-2009)

Rebalancing between asset classes boosts returns and decreases volatility. But setting your asset classes based on sectors of the economy is not an effective strategy. You can rebalance your investment allocation at three levels: stocks and bonds, between asset classes and among subclasses. At the highest level, rebalancing between stocks and bonds reduces risk. Selling some of your stocks after the market has appreciated limits your portfolio’s volatility and locks in some of your gains. Correlation between investment categories helps define asset classes and sort out which are merely subclasses. The lower the correlation, the greater the bonus you can gain by rebalancing regularly.
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assetallocation

Asset Allocation