SMEED CPA, Inc | 201 Sand Creek Road, Suite F | Brentwood, CA 94513 | Phone: 925-634-2344

       

 

 

Michael Uadiale, CPA

SMEED CPA, Inc.

 

Call our Testimonial Hotline & give us your feedback at:

 

800-609-9006 extension 3638

 


 

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    Why You Should Rebalance Your Portfolio

After months of market ups and downs, it is easy for your mix of stocks, bonds and other types of investments to stray from your target allocation.

 

When your portfolio strays too far, returning to your target allocation - a process know as rebalancing - can help control risk and keep your investment plan on track. For example, say your target allocation is 60% stocks, 35% bonds, and 5% cash (see graphic at right).

 

If stocks have recently outperformed bonds, your actual stock allocation may be closer to 70%.  A greater percentage of stocks means that your portfolio is now more volitale - prone to wider swings in value - and has a higher level of risk than you originally intended.

 

Conversely, if bonds have outperformed stocks, your portfolio may now be too conservatively invested to potentially reach your financial goals. There are two main ways to rebalance.

 

You can sell some shares in the overweighted asset class and invest the proceeds in the underweighted asset class.

 

Or you can invest new money, either in a lump sum or over time, in the underweighted asset class.

 

If you decide to sell shares, pleased remember that while you can sell shares without tax repercussions in a tax-favored account, such as a 401(k) or an IRA, selling share in a taxable account will generate either taxable gains or losses.

 

You are always welcome to talk to me about when and how to rebalance.  I offer a Free Portfolio Analysis (see box at right).  Call me at 925-634-2344 to get yours started.

 

PLEASE NOTE: Asset allocation does not ensure a profit or protect against loss in declining markets?

 



Would You Give Me Your
Feedback & Testimonial on Our Hotline?

 

Hello its Michael Uadiale, CPA of SMEED CPA Inc.  Weve just installed a toll-free number that I would like for you to call and tell me how you think we are doing as your CPA firm.

 

Just dial 800-609-9006 extension 3638 and follow the instructions.  If weve done a good job please let me know.  And if we can improve on anything, please mention that too.

 


 

Help Us Be Found on Google!

 

Also as we expand our business, we find more and more people are using the Internet and Google to look for us by searching Brentwood accountant or Brentwood CPA.

 

When they do this we want to be FOUND on GOOGLE.  One way you can help us is to give us an ONLINE REVIEW on our Google Maps/Places listing --->

 

Just click here to go to our Google Listing for SMEED CPA.  Scroll down to the Review area.

 

It may say:  Been here? Rate and review

 

You will click on the Rate and review link and then log into Google, then give us a review!

 

You can choose between 1 and 5 STARS and write in what you think about the tax or accounting work we have done for you.

 

It's that simple.  Thank you in advance for your help and cooperation!

 


 

As always you can call our offices if you have any questions about these or any other accounting related issues, at 925-634-2344. 

 

Regards, Michael Uadiale, CPA

Managing Partner, SMEED CPA, Inc.

 
 

 

SMEED CPA, Inc | 201 Sand Creek Road, Suite F | Brentwood, CA 94513
The Next Frontier CPA Firm | www.SmeedCPA.com | info@smeedcpa.com
Phone: 925-634-2344 | Fax: 925-634-2346 | Cell: 925-207-6771