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The August Drift: Is Your Portfolio Out of Alignment? · Money In Motion with Klaas Financial

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  Speaker 1: this morning from Lost Financial our retirement planning professionals Eric
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  Speaker 1: Schwartz and Josh Sterling.
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  Speaker 2: Eric, how you doing this week?
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  Speaker 3: Not too bad? Sean? How about yourself?
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  Speaker 1: Doing really well? Great to talk with you. Josh, Welcome
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  Speaker 1: back to the program. How have you been?
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  Speaker 4: Hey morning, Sean? Doing great over here.
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  Speaker 2: It's great to talk with both of you.
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  Speaker 1: And we've got a uh it's I I the first
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  Speaker 1: time out of this spend years ago, uh C, J
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  Speaker 1: and Malia talked about a little bit about kind of
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  Speaker 1: that drift on you and rebalancing your portfolio, which is
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  Speaker 1: something at the top I had never thought of, and
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  Speaker 1: it's just such a fascinating topic. And we're going to
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  Speaker 1: talk about specifically the August drift and is your portfolio
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  Speaker 1: out of alignment? We'll find out what that is. Questions
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  Speaker 1: to be asking, things you want to be looking into
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  Speaker 1: with Eric and Josh. Don't forget as well. Prime opportunity
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  Speaker 1: right now. If you've got a question, love to get
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  Speaker 1: you on the air this morning at six oh eight
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  Speaker 1: three two one thirteen ten At six eight three two
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  Speaker 1: giving me a call. Another cool thing A great opportunity
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  Speaker 1: This week are friends from Class Financial have offered up
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  Speaker 1: a great prize, a twenty five dollars gift card to
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  Speaker 1: Texas Roadhouse. Tell you a little bit later on in
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  Speaker 1: the program how you can win that prize. A little
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  Speaker 1: tip though, listen closer. Just about every week the question
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  Speaker 1: and answer to the Class Quiz questionly comes up during
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  Speaker 1: the show. So before we get rolling on this week's
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  Speaker 1: topic about portfolio rebalancing matters more than you think, let's
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  Speaker 1: actually look back at last week's show and get the
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  Speaker 1: question and answer there as well.
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  Speaker 3: Eric, Yes, last week we talked about all of the
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  Speaker 3: individuals who are involved in your estate plan. Right. We
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  Speaker 3: talk a lot about building your estate plan, making sure
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  Speaker 3: you have your documents in order. Well, this is where
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  Speaker 3: we were actually looking at who are the people who
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  Speaker 3: play different roles in that process? So our question was
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  Speaker 3: true or false? The executor of your estate and the
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  Speaker 3: trustee of your trust must always be the same person. So,
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  Speaker 3: as we talked about last week, not only do they
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  Speaker 3: not have to be the same person, it's often a
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  Speaker 3: good idea for them to maybe spread around that responsibility.
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  Speaker 3: So the answer was false. There's a really informative and
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  Speaker 3: great program as well. You can listen back at glassfinancial
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  Speaker 3: dot com. You can also subscribe to the podcast right
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  Speaker 3: at the website glassfinancial dot com. So today's show is
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  Speaker 3: called the August Drift. Is your portfolio out of alignment?
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  Speaker 3: And Josh, when investors hear the term portfolio drift, what
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  Speaker 3: exactly does that mean?
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  Speaker 4: Well, yeah, a portfolio drift is something that can happen
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  Speaker 4: inside almost every investment account, even when the investor is
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  Speaker 4: not actively making changes. An investor may start with a
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  Speaker 4: portfolio that is carefully diversified and intentionally designed, but over
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  Speaker 4: time the market moves, some asset classes perform better than others,
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  Speaker 4: some areas of a portfolio lag in the original allocation
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  Speaker 4: can slowly begin to look different from what was originally intended.
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  Speaker 4: That's why we often describe a portfolio as a living,
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  Speaker 4: breathing thing. Building the portfolio is not a one time event.
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  Speaker 4: Your financial plan, investment strategy, risk tolerance, and market performance
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  Speaker 4: are all constantly interacting with each other. If those pieces
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  Speaker 4: are not monitored, they can slowly fall out of alignment.
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  Speaker 4: The investor may still believe they own the same type
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  Speaker 4: of portfolio they started with, but the actual risk exposure
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  Speaker 4: may have changed.
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  Speaker 1: In the background, talking this morning with Josh Stirling and
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  Speaker 1: Eric Schwartz, ever retirement planning professionals from Class Financial online,
• 4:22
  Speaker 1: Class financial dot com. That's Class k l as financial
• 4:26
  Speaker 1: dot com. Great website, great data. Make that appointment at
• 4:28
  Speaker 1: Class Financial, don't forget it's complementary to you. You can,
• 4:31
  Speaker 1: of course book that appointment from class financial dot com
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  Speaker 1: or call the office right here in Madison at six
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  Speaker 1: so eight four four two five six three seven.
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  Speaker 2: So Eric, let's kind of put these gears in motion.
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  Speaker 1: Let's get an example of how drift can show up
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  Speaker 1: in someone's portfolio.
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  Speaker 3: Absolutely, I think an example would be would be helpful here.
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  Speaker 3: Anytime we have Josh on the show, we're always talking
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  Speaker 3: about very intelligent topics. So if we can come up
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  Speaker 3: with examples, then generally it makes it easier for people
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  Speaker 3: like me and hopefully the listeners to understand. And so
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  Speaker 3: if we're looking at an example here, a portfolio that
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  Speaker 3: starts with about sixty percent in stocks and about forty
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  Speaker 3: percent in bonds. That allocation was chosen for a reason. Right,
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  Speaker 3: We're not just randomly saying, okay, we're going to throw
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  Speaker 3: you in this portfolio. We're selecting it because it matches
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  Speaker 3: the client's objectives. Okay, so that's their time horizon, their
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  Speaker 3: income needs, their tolerance for risk. So in other words,
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  Speaker 3: the sixty forty mix is designed to support the broader
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  Speaker 3: financial plan and the client's overall needs. Now, let's imagine
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  Speaker 3: in this same scenario that stocks have a really good
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  Speaker 3: few years and bonds leg behind. You may look at
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  Speaker 3: recent years here and that would be pretty similar to
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  Speaker 3: what we're talking about here. So the client never makes
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  Speaker 3: another trade, that portfolio is gradually going to shift from
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  Speaker 3: our sixty percent stocks up maybe it's up to sixty
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  Speaker 3: six or even seventy percent in stock. So the client
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  Speaker 3: still thinks that they own a moderate balanced portfolio, but
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  Speaker 3: in reality they're taking more stock market risk than the
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  Speaker 3: original intended because their stock portfolio has grown. So that's
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  Speaker 3: our key point here. Most investors don't wake up one
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  Speaker 3: day and just decide to substantially increase their risk. Right.
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  Speaker 3: It happens gradually, and it's it's like never checking the
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  Speaker 3: air pressure in your tires. Right, Nothing dramatic is going
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  Speaker 3: to happen from one day to the next, but eventually
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  Speaker 3: things are not going to be operating in the way
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  Speaker 3: that we that we want them to great illustration.
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  Speaker 1: As we talked this morning with Eric Schwartz and Josh Stirling,
• 6:24
  Speaker 1: of course they are our retirement planning professionals from Class
• 6:27
  Speaker 1: Financial the website class financial dot com that's coss k
• 6:31
  Speaker 1: l as financial dot com and they're telephone number six,
• 6:34
  Speaker 1: So eight four four two five six three seven, no
• 6:37
  Speaker 1: charge for the financial get to know you, appoyment tech
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  Speaker 1: colsts Financial, it will be complimentary to you and Josh.
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  Speaker 1: What Eric was talking about there leads us right into rebalancing.
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  Speaker 1: So when advisors talk about rebalancing, what exactly are we
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  Speaker 1: talking about?
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  Speaker 2: What does that mean?
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  Speaker 4: Yeah, Well, simply said, rebalancing is the process of bringing
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  Speaker 4: a portfolio back to its intended target allocation. So let's
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  Speaker 4: use that same sixty forty example that Eric was just
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  Speaker 4: talking about. So if the stock portion grows from that
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  Speaker 4: sixty percent equity and the portfolio drifts to sixty six
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  Speaker 4: percent stocks, thirty four percent bonds. Rebalancing means trimming some
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  Speaker 4: of the asset classes, the equities that has grown beyond
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  Speaker 4: its target, and adding back to the asset class that
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  Speaker 4: has full and fallen below the target, So adding back
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  Speaker 4: to the bonds, so you would get back to that
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  Speaker 4: sixty percent stocks forty percent bonds portfolio. So in playing terms,
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  Speaker 4: you're restoring the portfolio's original risk profile. That matters because
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  Speaker 4: the allocation was connected to the investor's goals in the
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  Speaker 4: first place. If the portfolio drifts too far, it may
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  Speaker 4: no longer reflect the level of risk the investor originally
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  Speaker 4: intended to take. What makes rebalancing powerful is that it
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  Speaker 4: gives investors a disciplined process. It turns portfolio management into
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  Speaker 4: a rules based decision rather than what's often done an
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  Speaker 4: emotional reaction to what'sever happening in the market.
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  Speaker 1: Great perspective this morning as we talk with Josh Sterling
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  Speaker 1: and Eric Schwartz, our retirement planning professionals from COSS Financial.
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  Speaker 1: A really interesting topic, a lot of mechanics, a lot
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  Speaker 1: of great stuff going on. If you forget or miss
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  Speaker 1: part of today's program, you can always listen back right
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  Speaker 2: That's six oh eight four four two five six three seven.
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  Speaker 1: We'll continue our conversation with Eric Josh and take your
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  Speaker 1: call next as Money in Motion with Coss Financial continues
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  Speaker 1: right here on thirteen ten WIB talking this morning with
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  Speaker 1: Eric Schwartz and Josh Sterling, our retirement planning professionals from
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  Speaker 1: Class Financial.
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  Speaker 2: Don't forget.
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  Speaker 1: That's colss K l a a S Financial dot Com.
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  Speaker 1: A lot of great information there as well. Not only
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  Speaker 1: you can learn about the team, you can learn about
• 9:19
  Speaker 1: separate divisions. You can also schedule complementary conversation right online.
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  Speaker 1: That's class financial dot Com as well as listen back
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  Speaker 1: to this in previous shows podcasts their telephone number six
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  Speaker 1: so eight four four two five six three seven. Talking
• 9:32
  Speaker 1: this week about the August drift. Is your portfolio out
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  Speaker 1: of alignment? And Eric I heard that word discipline and
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  Speaker 1: I also talked to you know, we think about the
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  Speaker 1: importance of being a discipline when it comes to investing.
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  Speaker 1: Why can it be so helpful as far as behavior
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  Speaker 1: a behavioral.
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  Speaker 3: Standpoint, Yeah, this is this is something we've really been
• 9:52
  Speaker 3: focusing on on the show here, I would say over
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  Speaker 3: the last six months. I know, we did the Resilient
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  Speaker 3: Investor show and we did the Investor in the Mirrors,
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  Speaker 3: So really looking at the behavioral aspects of the investment
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  Speaker 3: experience and you know, rebalancing. It can naturally encourage investors
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  Speaker 3: to do something that sounds simple, but it can be
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  Speaker 3: very difficult emotionally, right, So it encourages them to sell
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  Speaker 3: portions of their portfolio that have risen significantly and then
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  Speaker 3: buy assets that may have become relatively cheaper.
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  Speaker 1: Right.
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  Speaker 3: So, in other words, we're creating a framework here that
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  Speaker 3: allows investors to do what we always hear they should do, right.
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  Speaker 3: We should buy low and you should sell high. The
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  Speaker 3: challenge with that, though, is that most people do not
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  Speaker 3: feel that way in the moment.
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  Speaker 4: Right.
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  Speaker 3: So investors often like buying after markets have already gone
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  Speaker 3: up because it feels comfortable, it feels safe. And at
• 10:44
  Speaker 3: the same time, very few people enjoy buying after markets
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  Speaker 3: have fallen because the news is usually negative, emotions are
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  Speaker 3: running high. So with a rebalancing strategy, you actually have
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  Speaker 3: a rules based process that can be really really valuable.
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  Speaker 3: It removes some of the more or I guess, emotional components,
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  Speaker 3: and it really helps investors follow a plan that was
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  Speaker 3: established before the stress of the of the moment arrives.
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  Speaker 1: I love all the stuff that we when we talk
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  Speaker 1: about some of the emotional and the psychological side of
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  Speaker 1: it is some of it is, you know, outside of
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  Speaker 1: the moment, very like oh yeah, of course, of course,
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  Speaker 1: But when it's happening, we get very like, oh, but
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  Speaker 1: this has been so hot for me. Why would I
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  Speaker 1: why would I want to change now I've been doing
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  Speaker 1: so well, and it's talk about that importance of discipline
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  Speaker 1: this morning, and Josh again, it kind of sounds easy
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  Speaker 1: like in theory, but I would imagine, man, it's got
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  Speaker 1: to get a lot harder when when markets are actually falling.
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  Speaker 4: Yeah, it absolutely does. In fact, rebalancing during marked declines
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  Speaker 4: is often the hardest times psychologically. I mean, imagine stocks
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  Speaker 4: have fallen sharply, you're correction territory. Maybe if you're in
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  Speaker 4: bear territory. All the headlines you're seeing are negative. Investors
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  Speaker 4: are nervous, your friends, family nervous, and the portfolio management
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  Speaker 4: process just goes and says, hey, you should buy more
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  Speaker 4: equities right now. That can be incredibly uncomfortable, but that
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  Speaker 4: discomfort is exactly why the discipline matters. We do not
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  Speaker 4: know where the market bottom is going to be. Nobody does.
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  Speaker 4: In the midst of COVID, nobody knew when that was
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  Speaker 4: going to happen, but you had people rebalancing portfolios as
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  Speaker 4: the discipline was coming up. The goal of this rebalancing
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  Speaker 4: is not to predict what happens next. The goal is
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  Speaker 4: to maintain the portfolios intended risk exposure. So at COSS Financial,
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  Speaker 4: we typically use tolerance bands. For example, if a sixty
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  Speaker 4: to forty portfolio drifts by approximately six percentage points from
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  Speaker 4: its target, that could trigger a rebalance. The decision is
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  Speaker 4: not based on feelings, headlines, elections, or market predictions. It's
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  Speaker 4: based on rules. And rules are valuable because emotions are
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  Speaker 4: often one of the biggest challenges investors face.
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  Speaker 2: I believe that that is for sure.
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  Speaker 1: Talking this morning with Josh Sterling and Eric Schwartz, they
• 13:00
  Speaker 1: are our retirement planning professionals from Class Financial. Get out
• 13:03
  Speaker 1: over the website this Morningcossfinancial dot com. That's COSS k
• 13:06
  Speaker 1: l aasfinance dot com. You can schedule a complementary chat
• 13:10
  Speaker 1: right from the website, or you can call the office
• 13:12
  Speaker 1: right here in Madison at six oh eight four four
• 13:14
  Speaker 1: two five, six three seven. That first gets no appointment.
• 13:17
  Speaker 1: It's not going to cost you a thing that will
• 13:18
  Speaker 1: be complementary to you. Again their number six oh eight
• 13:21
  Speaker 1: four four two five, six three seven. Talking this week
• 13:24
  Speaker 1: about why portfolio rebalancing matters more than you think. And Eric,
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  Speaker 1: everything we've discussed so far comes back to discipline. Does
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  Speaker 1: the does the research back up that process?
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  Speaker 3: Yeah, that's a great question, and I would say in generally, yeah,
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  Speaker 3: the research definitely supports rebalancing as a as a risk
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  Speaker 3: management tool. So if we look at a study from
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  Speaker 3: the CFA Institute, and I should I should define that
• 13:49
  Speaker 3: this CFA stands for Chartered Financial Analyst and it's sort
• 13:53
  Speaker 3: of the gold standard for investment professionals in terms of
• 13:57
  Speaker 3: a professional designation. And just to throw a little some
• 14:01
  Speaker 3: accolades towards Josh here, he is the president of the
• 14:04
  Speaker 3: CFA Institute of Madison. So this is, you know, this
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  Speaker 3: is kind of the where the smartest people in the
• 14:10
  Speaker 3: room are putting their heads together. And one of their
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  Speaker 3: studies examined a portfolio allocated to about sixty percent stock,
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  Speaker 3: thirty percent bonds, and ten percent in commodities, and they
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  Speaker 3: tracked the performance over roughly two decades, and the rebalanced
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  Speaker 3: portfolio generally generally provided slightly better returns than the portfolio
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  Speaker 3: that was never rebalanced. But the bigger part of this
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  Speaker 3: was risk. So volatility was meaningfully lower in the rebalanced portfolio,
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  Speaker 3: and that portfolio maintained a much more consistent risk profile
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  Speaker 3: over time. So that's a really important distinction. Our goal
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  Speaker 3: when we're rebalancing is not necessarily to maximize returns in
• 14:51
  Speaker 3: every single market environment. The goal is actually to keep
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  Speaker 3: the portfolio aligned with the level of risk that the
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  Speaker 3: investor intended to take. And the research is pretty clear.
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  Speaker 3: It tells us that REBOUNDCE portfolios generally maintain kind of
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  Speaker 3: tighter control over portfolio risk, tighter control over allocation drift,
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  Speaker 3: and tighter control over draw downs during what we would
• 15:14
  Speaker 3: call a more challenging market environment.
• 15:16
  Speaker 1: Interesting talking this morning with Eric Schwartz and Josh Sterling.
• 15:20
  Speaker 1: They are our retirement planning professionals from Class Financial. Go
• 15:23
  Speaker 1: to the website class financial dot com. I've told you
• 15:25
  Speaker 1: a little bit about the podcast, opportunity to listen back,
• 15:27
  Speaker 1: I've told you about the opportunity to schedule a complimentary chat.
• 15:30
  Speaker 1: I haven't mentioned that they updated their their season every season.
• 15:33
  Speaker 1: You guys put up new new graphics and you guys
• 15:36
  Speaker 1: went from a couple of years ago it was different
• 15:38
  Speaker 1: picture seasonal.
• 15:39
  Speaker 2: Now it's videos, which I really like and I got
• 15:41
  Speaker 2: geek out on that stuff.
• 15:42
  Speaker 1: So check them out. Class financial dot com. Learn all
• 15:45
  Speaker 1: about other separate divisions.
• 15:46
  Speaker 3: What's that airing ones Sean? What's you always like? Our
• 15:49
  Speaker 3: Thanksgiving one?
• 15:50
  Speaker 1: Just got a lot of food. You know, you know
• 15:53
  Speaker 1: what motivates me, Eric, that is for sure, Yeah, and
• 15:57
  Speaker 1: it is. It is a fantastic website and again it
• 15:59
  Speaker 1: is there's a lot of great information complementary to you
• 16:02
  Speaker 1: right online. Speaking of complementary, you can schedule a complementary
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  Speaker 1: chat right from the website coss Financial dot com. That's
• 16:08
  Speaker 1: coss k l aa S Financial dot com and their
• 16:11
  Speaker 1: telephone number six soh eight four four two five six
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  Speaker 1: three seven. Of course you can start that conversation, schedule
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  Speaker 1: it over the phone against give them a call six
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  Speaker 1: so eight four four two five six three seven. That
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  Speaker 1: first meeting at COSS Financial is going to be complementary
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  Speaker 1: to you. So no charge again that number six so
• 16:24
  Speaker 1: eight four four two five six three seven. We're going
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  Speaker 1: to continue our conversation with Josh and Eric. We will
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  Speaker 1: do that next as Money in Motion with Coss Financial
• 16:32
  Speaker 1: continues right here on thirteen ten. Doll will u ib
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  Speaker 1: a smart talking this morning with our retirement planning professionals
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  Speaker 1: from Class Financial, Eric Schwartz and Josh Sterling. Of course,
• 16:41
  Speaker 1: you can learn all about Class Financial on the website
• 16:43
  Speaker 1: class financial dot com. Talking this week about the importance
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  Speaker 1: of portfolio rebalancing. Why it matters more than you think
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  Speaker 1: in Josh, how should investors and folks think about implementing
• 16:52
  Speaker 1: a rebalancing strategy in practice?
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  Speaker 4: Well, I think it can be a really tough thing
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  Speaker 4: to think about when you're just approaching it just in general,
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  Speaker 4: but generally, there are two common approaches that you can
• 17:07
  Speaker 4: take when rebalancing your portfolio. The first one is calendar
• 17:11
  Speaker 4: based rebalancing. This simply means reviewing the portfolio once a year,
• 17:17
  Speaker 4: once a quarter, a normal cadence where you can make
• 17:21
  Speaker 4: adjustments on that set schedule. That approach can be simple
• 17:25
  Speaker 4: and easy to understand, and it's really, honestly one of
• 17:28
  Speaker 4: the main reasons many investors like it. The second approach,
• 17:33
  Speaker 4: it's a little bit more time consuming and requires a
• 17:38
  Speaker 4: little bit more set up at the beginning, but it's
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  Speaker 4: what we use here at class financial tolerance band rebalancing,
• 17:44
  Speaker 4: So instead of waiting for a specific date on the calendar,
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  Speaker 4: the portfolio was allowed to move within these predetermined ranges.
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  Speaker 4: Once those ranges are exceeded, are rebalance occurs. Research is
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  Speaker 4: generally shown that tolerance band approaches can be effective because
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  Speaker 4: they focus on actual changes in the portfolio risk rather
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  Speaker 4: than arbitrary dates on the calendar, and that distinction matters.
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  Speaker 4: If you review two different portfolios on December thirty, first
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  Speaker 4: one may need significant rebalancing, while the other may already
• 18:17
  Speaker 4: be right on target. The data itself doesn't tell you
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  Speaker 4: much about risk. The amount of drift within the actual
• 18:23
  Speaker 4: portfolio does. That's why I we'd care more about drift
• 18:27
  Speaker 4: rather than just dates.
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  Speaker 1: Really interesting, and we talked this morning about that drift
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  Speaker 1: and about rebalancing. Eric, are there easier or software ways
• 18:35
  Speaker 1: to rebalance the rebalance investors can sometimes maybe overlook.
• 18:41
  Speaker 3: Yeah, this is probably one of the more practical parts
• 18:44
  Speaker 3: of our conversation today. Rebalancing doesn't always have to mean
• 18:47
  Speaker 3: selling one investment and then buying another. New contributions to
• 18:51
  Speaker 3: your account or even distributions can also help move your
• 18:55
  Speaker 3: portfolio back toward its target allocation. So for investors who
• 18:59
  Speaker 3: are still saving money, contributions can be basically one of
• 19:02
  Speaker 3: the most effective rebalancing tools that they have. So instead
• 19:06
  Speaker 3: of selling positions, you can just direct new money into
• 19:09
  Speaker 3: whichever asset classes are underweight, and when you receive something
• 19:14
  Speaker 3: like dividend payments or even interest income within the portfolio,
• 19:18
  Speaker 3: these can all be used to help gradually move a
• 19:20
  Speaker 3: portfolio back towards the intended allocation. Now for investors who
• 19:25
  Speaker 3: are actually taking money out of their account, maybe during retirement,
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  Speaker 3: the same concept can work in reverse. So you can
• 19:32
  Speaker 3: use your dividends and your interest to supplement your distributions.
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  Speaker 3: Or you might even focus withdrawals on areas of the
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  Speaker 3: portfolio that are overweight or if they've performed well recently,
• 19:44
  Speaker 3: or maybe even held up better during a market declient.
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  Speaker 3: So these software approaches can be more tax efficient and
• 19:50
  Speaker 3: they can actually help us often accomplish the same objective
• 19:53
  Speaker 3: as buying and selling securities.
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  Speaker 1: Talking this morning with Eric Schwartz and Josh Eurling, our
• 19:57
  Speaker 1: retirement planning professionals from Class Financial website Class Financial dot Com.
• 20:01
  Speaker 1: That's Class klaas Financial dot com And Josh, another reason
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  Speaker 1: our rebalancing matters is the markets themselves evolved.
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  Speaker 2: Can you kind of dig into that and kind of explain.
• 20:09
  Speaker 4: That, absolutely, markets are constantly changing, and that's really another
• 20:16
  Speaker 4: reason why this poorfolly monitoring matter is really on a
• 20:20
  Speaker 4: constant basis. If we look back several decades, global market
• 20:25
  Speaker 4: capitalization look very different than it does today. The United
• 20:29
  Speaker 4: States represents a much larger portion of global equity markets
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  Speaker 4: now than it did in the past, which may surprise
• 20:36
  Speaker 4: many investors. Back in nineteen eighty seven, the US represented
• 20:41
  Speaker 4: roughly one third of the MSCI All Country of World Index,
• 20:46
  Speaker 4: or in other words, just the global stock market. But
• 20:49
  Speaker 4: fast forward to twenty twenty six and the US is
• 20:53
  Speaker 4: now about sixty four percent of the global stock market,
• 20:56
  Speaker 4: a huge shift happening over a decent of time. So
• 21:01
  Speaker 4: most of that shift has really occurred over the past
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  Speaker 4: two decades as US companies experience remarkable periods of earnings, growth, innovation,
• 21:09
  Speaker 4: and market leadership. But market leadership is not guaranteed to
• 21:14
  Speaker 4: stay the same forever. Countries that led during one decade
• 21:18
  Speaker 4: can fall behind in the next, Emerging economies can become
• 21:21
  Speaker 4: major drivers of growth over time. We also see the
• 21:25
  Speaker 4: same thing happening at different parts of the market, so
• 21:29
  Speaker 4: industry level, as new technologies emerge and consumer preferences shift.
• 21:33
  Speaker 4: You can see this shifting back and forth with different
• 21:36
  Speaker 4: sectors all across the equity market.
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  Speaker 1: Interesting stuff and really great perspectives this morning, and before
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  Speaker 1: we wrap up on this week's conversation about why portfolio
• 21:45
  Speaker 1: rebalancing matters more than you think. Eric do you have
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  Speaker 1: any final thoughts on this week's topic.
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  Speaker 3: I think your great takeaway for listeners is something that
• 21:53
  Speaker 3: Josh said earlier. Your portfolio is a living, breathing thing. Right,
• 21:57
  Speaker 3: So even during periods when nothing appears to be happening,
• 22:01
  Speaker 3: to drift continues to happen in the background. The investments
• 22:04
  Speaker 3: are moving, the markets are changing, in the portfolio can
• 22:07
  Speaker 3: slowly move away from you know, the allocation that was
• 22:10
  Speaker 3: originally tied to your goals, you know, taking into account
• 22:13
  Speaker 3: your risk tolerance to your financial plan. So this is
• 22:15
  Speaker 3: why rebalancing should not be viewed as like a one
• 22:18
  Speaker 3: time cleanup project. It's part of an ongoing portfolio management
• 22:22
  Speaker 3: process and a good rebalancing strategy. It helps investors stay
• 22:26
  Speaker 3: aligned with the plan they intended to follow, so that
• 22:29
  Speaker 3: rather than allowing market performance alone to determine how much
• 22:32
  Speaker 3: risk they're taking, they're also involved in the process.
• 22:36
  Speaker 1: Great perspective. Fantastic show this week. As always, don't forget
• 22:39
  Speaker 1: that's incentive you want to listen back. Of course, head
• 22:42
  Speaker 1: on over to class financial dot com because listens back
• 22:44
  Speaker 1: to this in previous shows. Podcast again that available to
• 22:47
  Speaker 1: you right online at costs Financial dot Com. That's coss
• 22:50
  Speaker 1: k laa as Financial dot com. You can also have
• 22:53
  Speaker 1: a complementary schedule complimentary chat right from the website colssfinancial
• 22:57
  Speaker 1: dot com. Or give a call six o eight to
• 22:59
  Speaker 1: four four to two, five, six three seven. No charge
• 23:02
  Speaker 1: for that initial get to know you appointment tech COSS Financial.
• 23:04
  Speaker 1: It will be complimentary to you again their number six
• 23:07
  Speaker 1: oh eight four four two five six three seven. You
• 23:09
  Speaker 1: gonna want to hold on to that telephon number because
• 23:11
  Speaker 1: it's time now for the class Quiz question of the week.
• 23:13
  Speaker 2: It works like this.
• 23:13
  Speaker 1: In just a moment, I'll ask you the class quiz
• 23:15
  Speaker 1: question the week. You will then have thirty minutes from
• 23:17
  Speaker 1: the end today's program to call the Class Financial office
• 23:19
  Speaker 1: right here in Madison at six oh eight four four
• 23:21
  Speaker 1: two five six three seven. And if you are the
• 23:23
  Speaker 1: first call correct answer, win this week's prize, which is
• 23:26
  Speaker 1: a twenty five dollars gift card to Texas Roadhouse. This
• 23:29
  Speaker 1: week's Closs Quiz question week, is this true or false?
• 23:33
  Speaker 1: The main goal of rebalancing is to maximize returns in
• 23:37
  Speaker 1: every type of market environment. Is that true or is
• 23:40
  Speaker 1: that false? Telephone number six oh eight four four two
• 23:43
  Speaker 1: five six three seven, First call correct answer when that
• 23:45
  Speaker 1: twenty five dollars gift card to Texas Roadhouse.
• 23:47
  Speaker 2: Don't forget as well.
• 23:48
  Speaker 1: That's Class Financials office right here in Madison one more
• 23:51
  Speaker 1: time with the number six oh eight four four two five,
• 23:54
  Speaker 1: six three seven, Eric.
• 23:55
  Speaker 2: Josh, always informative, always enjoyable. You guys, enjoy this great Dan,
• 23:58
  Speaker 2: and we'll do it all again real So.
• 24:01
  Speaker 3: Thanks Sean, Thank you very much, Sean, whose.
• 24:04
  Speaker 2: Comes your way next? Here on thirteen ten WIBI.
• 24:07
  Speaker 1: This is Money in Motion with Coss Financial Asset Advisors, LLC,
• 24:11
  Speaker 1: a registered investment advisor registered with the SEC. The contents
• 24:16
  Speaker 1: of this show are for informational purposes only and should
• 24:19
  Speaker 1: not be considered individual investment advice. Class Financial does not
• 24:22
  Speaker 1: offer tax or legal advice. Any opinion offered during the
• 24:26
  Speaker 1: course of this show is the opinion of that particular
• 24:29
  Speaker 1: investment advisor representative and not necessarily the opinion of Cost
• 24:33
  Speaker 1: Financial