Tim Wyman: Now is the Time to Rebalance Your Portfolio

Contributed by: Timothy Wyman, CFP®, JD Tim Wyman

The end of August for investors might have felt like a ride at Cedar Point. The downs were jarring, the ups exhilarating. In the midst of consecutive days of corrections, Detroit News Financial Editor Brian J. O’Connor interviewed The Center’s managing partner Tim Wyman.

“We investors have been pretty spoiled the last few years with low volatility, and these corrections are certainly more common than people think,” Tim said. “This latest correct is certainly nerve-wracking, but it’s common. This time it’s not different and a prudent, long-term focus will  prevail.”

Shifting investors’ focus from immediate headlines about China, Europe, the Federal Reserve and oil to the long-term may be easier in a bull market. But Tim says concerns should stiffen your resolve.

How Should I React?

When it comes to your next move, Tim told Detroit News that history suggests now is the time to rebalance your portfolio. Taking a look at your mix of stocks, bonds and assets on a quarterly basis is always a good practice, but doing it now makes sense.

“Research suggests that if you rebalance when there are large swings you get the biggest bang,” Tim said. “So this is an ideal time to be rebalancing. Some of that will mean increasing your stock allocation at this time. It’s hard to do, but we know it’s the right thing to do.”

Is the six-and-a-half year historic bull market over? The indicators aren’t pointing to a recession. But during this seesaw of the market, it is time to focus on the long term and consider rebalancing. If you’re ready to take a look at your portfolio, we’re here to help.

Timothy Wyman, CFP®, JD is the Managing Partner and Financial Planner at Center for Financial Planning, Inc. and is a contributor to national media and publications such as Forbes and The Wall Street Journal and has appeared on Good Morning America Weekend Edition and WDIV Channel 4. A leader in his profession, Tim served on the National Board of Directors for the 28,000 member Financial Planning Association™ (FPA®), mentored many CFP® practitioners and is a frequent speaker to organizations and businesses on various financial planning topics.

The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Tim Wyman and not necessarily those of Raymond James. Past performance may not be indicative of future results. Diversification and asset allocation do not ensure a profit or protect against a loss. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Rebalancing a non-retirement account could be a taxable event that may increase your tax liability. You should discuss any tax or legal matters with the appropriate professional.