Upgrade… (part 3 of 3)

The third point of the upgrade article is more investing specific. 


Imagine you had 60% in stocks and 40% in bonds. Your stocks went down 40% and your bonds went down 15%. A $100,000 portfolio now is worth $70,000, but even more out of wack is that now you are almost 50% stocks and 50% bonds. That's not what you wanted in the beginning, so sell/transfer/exchange some of your bond portfolio into your stocks to make it 60/40 again. You'll be buying stocks and lows and selling an asset class that did better. Buy low, sell high. That's what we're always trying to do. 

I rebalance most portfolio's annually, so you should take a look at your funds/401k/403b and do the same. This market downturn will turn around eventually, but you don't just have to sit on your hands and do nothing. 


  1. Dude! Just wanted to make sure you knew that I caught your comment on mine. Hope you guys are doing good, it’s been a while! Oh yeah, and my wife made me check your wife’s blog for her latest post. My comment was “so that’s those look like.” Latez.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s