WealthPlan Advantage Services

Planning
Your Future

  • Wealth Accumulation
  • Early Retirement
  • Later Stage Spending
  • Estate Planning

Managing
Your Portfolio

  • Customized Wealth Strategy
  • Goal Focused
  • Outcome Driven
  • Anticipate Risks

Generating
Retirement Income

Sources of Income:

  • Guaranteed
  • Variable
  • Taxable
  • Non-Taxable
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Asset Allocation

Academic studies have shown that more than 93% of long-term returns came from the asset classes that a portfolio invested in. Only a small portion (7%) came from security selection and timing. Asset allocation is truly the key driver of a portfolio’s long-term performance. Therefore, WPA adheres to the dictum “be an owner, not a loaner” as it pertains to determining a long-term investment plan.

Diversification

Diversification is the second most critical determinant of portfolio behavior. Diversification is the conscious trade-off decision to never be able to make huge profits in exchange for never experiencing huge losses. We don’t need extremes to achieve our long-term goals. Creating diversification – and keeping it – protects you from market timing and fad investing. We choose to run the race like Aesop’s tortoise; slow and steady.

Rebalancing

As markets fluctuate, your portfolio can become unbalanced — exposed to an asset that has appreciated significantly, while other positions have remained flat or depreciated in value. A typical response is to sell the underperformers and reinvest in what has recently done well. Many of us fall victim to unconsciously becoming speculators instead of investors by chasing the hot trend instead of seeking out-of-favor value. Rebalancing requires the discipline to take profits from stronger performing sectors and reallocating into undervalued sectors.

No strategy, including asset allocation and rebalancing, assures success or protects against loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk. Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs.

For a private consultation please call Gregory M. Nardolillo at 973.867.1828
or email at GregNard@wealthplanadv.com