Find Your Balance, Boost Your Wealth

Congratulations to those who didn’t adjust their retirement accounts during the gloom of last year. Retirement accounts are long-term investment vehicles, and investors should stick to their investment strategy, during both the good times and bad. Some sold their equity positions as the market was down, and have now missed the rebound.

Find Your Balance, Build Your Wealth

However, it is likely you are not making an adjustment that should be made. Most investors do not rebalance their portfolios frequently enough. If you entered last year with a 60% stock/40% bond mix, your portfolio is likely now close to a 50%/50% split. Without rebalancing, your portfolio will miss the upside you were looking for with your original asset allocation.

History shows rebalancing will increase the return of a portfolio and decrease the portfolio’s risk over time. The following chart illustrates this utilizing data from 1970 thru 2006.

Additionally, according to a study conducted by Schwab, a 60%/40% portfolio of $100,000 would have grown to $2.9 million from 1970 to 2008. However, if the portfolio was rebalanced annually, the portfolio would now be worth $3.5 million.

About the author

Lon Jefferies, CFP®, MBA

Lon Jefferies is an investment advisor representative with Net Worth Advisory Group, a fee-only financial planning firm in Salt Lake City, Utah. He is a Certified Financial Planner (CFP®) and a member of the National Association of Personal Financial Advisors (NAPFA). He possesses an MBA and bachelor's degrees in Finance and Marketing from the University of Utah. Lon writes articles for local magazines such as Utah CEO, Business Connect and Utah Business Magazine, and he consistently contributes articles to online magazines such as and (by The Wall Street Journal). Additionally, Lon is an expert author at Lon has been quoted nationally in publications such as the NY Times and Investment News.

Lon can be contacted at (801) 566-0740 or Learn more about Net Worth Advisory Group at and visit Lon's blog at

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