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Rebalance Your Portfolio

Rebalance Your Portfolio

May 28, 2022
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Here is a transcript of the video:

Hey there everybody, Austin Peterson here with Backbone Financial & Lincoln Financial Advisors. This is video # 6 of an 8-part series in actionable strategies that you can employ during the Covid-19 pandemic or things that you can control in your life at this point. So, today we are going to talk about rebalancing your portfolio. So, hopefully when you set up your portfolio, either on your own or with an advisor at the time…you put together a portfolio that was appropriate for you, for your risk tolerance, your time horizon that was made up of different asset classes, and most of the time people think of stocks and bonds, so we will think in those terms or talk in those terms today. So, you may have put a certain percentage in stocks and a certain percentage in bonds at the time and that was appropriate at that time. Well, when the market shifts the way that it has shifted, that balance gets out of whack a little bit, so it may be time to rebalance your portfolio to make sure that you're appropriately allocated for your risk tolerance and your time horizon today given what has taken place in the markets. And so if the market rebounds, which we expect it to do and history is on our side in stating so…we, of course, don't guarantee that, but when history states that it rebounds, well if you are set up and you have now taken some losses in equities and so your portfolio is out of balance and you can rebalance that by selling some bonds, for example, and buying more equities…then if the market recovers that way, you've got the greater percentage in equities that you should have had based on your risk tolerance and time horizon and if that happens, then you stand to make a better return on the way back up, because you are in a portfolio that is appropriate for you and your risk tolerance and your time horizon. Hopefully, this makes sense and you appreciate the information. Everybody stay healthy and keep those hands washed.

Diversification does not guarantee a profit or protect against loss in a declining market.

Past performance does not guarantee future results. Lincoln Financial Advisors and its representatives do not provide tax advice. Please contact a tax professional regarding your specific situation.

Austin L. Peterson is a registered representative of Lincoln Financial Advisors Corp. Securities and investment advisory services offered through Lincoln Financial Advisors Corp., a broker-dealer (member SIPC) and registered investment advisor.

Insurance offered through Lincoln Marketing and Insurance Agency, LLC and Lincoln Associates Insurance Agency, Inc. and other fine companies. Backbone Financial is a marketing name for business conducted through Lincoln Financial Advisors Corp.