Future Contribution Changes
KEVIN’S COMMENTS:
Just as the seasons change, the market changes too!
What a difference one month makes!
Last month I was writing how high the VIX (Fear Index) got, the downtrend of the market, etc.
This month, the VIX is ending the month below 13!
The stock market (S&P 500) is up over 10% as I write this (11/29/23) and interest rates have fallen.
Does this mean that “The Fed” is done raising interest rates?
Maybe.
Maybe not!
Time will tell.
What this does mean, is that it’s never been more important for you to have a strategy to deal with your investments during this rapidly changing time.
So, buckle up, as we go screaming into year end!
FUTURE CONTRIBUTIONS:
Future contributions are money that is added to your plan with every paycheck. We monitor the future contributions on a monthly basis and are trying to direct to invest these monies into investments that may be on sale.
This month we are advising that you use the following:
INFLATION PROTECTED BOND
LARGE VALUE
SMALL VALUE
The exact amounts you should allocate depend on the model that you are using. These categories may or may not be available in your plan. Please log into your Participant Dashboard to see the exact allocations you should be using as of today.
REBALANCE - STRATEGIC MODELS:
Our “Strategic Models” combine the benefits of asset allocation and “buy and hold” strategies. These models rebalance quarterly back to their risk “targets” and remain fully invested through all market cycles. Our Strategic Models rebalance the first trading day of every quarter.
NO CHANGES
(Last Rebalance was on Monday, October 2nd)
The exact amounts you should allocate depend on the model that you are using. These categories may or may not be available in your plan. Please log into your Participant Dashboard to see the exact allocations you should be using as of today.
REBALANCE – TACTICAL MODELS:
Our “Tactical Models” combine the benefits of asset allocation and a “momentum investing” strategies. These models rebalance periodically back to their risk “targets” and the targets can be changed at any time given the current market conditions. These models may go through periods of time while holding larger amounts of cash during downtrends.
NO CHANGES
(Last Rebalance was on Wednesday, November 1st)
The exact amounts you should allocate depend on the model that you are using. These categories may or may not be available in your plan. Please log into your Participant Dashboard to see the exact allocations you should be using as of today.
Kevin’s Closing:
Please contact your financial adviser if you are currently using Plan Confidence for your ongoing and professional advice and you have any questions.
If you are looking for ongoing, professional advice, please click the Learn More button above and fill out the brief form.
We appreciate you reading this far and hope that you stay confident!
This update has been written by Kevin T Clark, RF™.
All opinions expressed are those of the author and not that of Plan Confidence Corporation nor any other firm or individual.
Kevin T Clark, RF™ is the CEO and Co-founder of Plan Confidence Corporation.
Kevin is an ERISA Nerd and one of only a hundred(ish) Dalbar certified Registered Fiduciaries (RF™) in the United States.
He has been helping hard working Americans invest their money since 1997!
Plan Confidence Corporation is an SEC registered investment firm specializing in providing advice to hard-working Americans investing in their employer’s retirement plans (401k, 403b, TSP, etc).
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