Taking Stock And Taking Action
How To Move Forward in 2022
As we come to the close of the second year of the pandemic, it may feel a bit like we’re living in the movie “Groundhog Day.” While we are not waking up every morning to Sonny and Cher’s “I Got You Babe,” it does seem as though we are unable to escape daily reports detailing the latest “variant of concern.” As the talking heads chatter interminably about the continuing uncertainties, we may feel like throwing a shoe at the TV and yelling “STOP…ENOUGH!”
But when we take a step back to assess the situation, it’s clear we are far better off currently than we were at this time last year. We have a variety of vaccines and other medical innovations...but there is uncertainty. As always during such times, the advice I give my clients is to focus on the things we can control. While we cannot control world and market events, we can create and execute plans that help us to stand firm and confident when adverse situations and uncertain times arise. The key items I have been addressing with clients, and that everyone should be addressing as we end 2021, are as follows:
1. Portfolio Rebalancing
With the stock market hovering around record levels, it’s more important than ever to be sure that you are comfortable with the risk levels of your portfolio. While we make every effort to have your portfolio allocation closely follow your individualized risk profile, we welcome any input from you on this topic.
Striving to be as tax-efficient as possible means that if you have any tax losses on positions in taxable accounts, it may make sense to harvest those losses to offset any gains. Rebalancing positions in IRAs or other retirement accounts should be looked at closely, too. However, at the end of the day, while taxes are a consideration, it’s most important to ensure that your portfolio reflects an asset allocation that is aligned with your goals and risk tolerance as the markets sit at or near all-time high levels.