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401k recommendation 401k Allocation Recommendations – April 2021

April 02, 2021
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March showed us some volatility in the markets. It seemed as if every time there was a news report about inflation, which caused bond prices to come down and in turn the yield of the ten year treasury to go up. When this happens investors often are at a pause, wondering what will come next. The good news about inflation is that over time it leads to higher yields in bonds and other income type investments, the bad news: it could take years to see rates go up.

In the equity markets we have seen gains in value and core investments when compared to growth. Many investors have been waiting for this to happen for over a year. The Coronavirus bull run of technology and growth investments has taken a pause, the thing to remember is to stay balanced and invest based upon your plan.

It is important to note that the IRS has extended the deadline for 2020 IRA contributions until May 17, 2021, this gives investors additional time to add to their IRA’s for last year. For additional information visit this article.

If you are an employer that offers a 401k to your employees this is a great time of the year to take care of your fiduciary responsibility to your plan and perform a complimentary benchmarking service at Adaptive Wealth Partners. This will allow you to ensure that your plans fees and investments stacks up against other plans that are of similar size. We have often found that as plans grow they are not reviewed regularly to see if there is an opportunity to lower fees to both the employer and the employees who participate in the 401k.

If you would like us to assist you with your 401k or to have us benchmark your plan send us an email at buildwealth@adaptivewealthpartners.com.



CONSERVATIVE: A Conservative investor values protecting principal over seeking appreciation. This investor is comfortable accepting lower returns for a higher degree of liquidity and/or stability. Typically, a Conservative investor primarily seeks to minimize risk and loss of principal.

MODERATE: A Moderate investor values reducing risks and enhancing returns equally. This investor is willing to accept modest risks to seek higher long-term returns. A Moderate investor may endure a short-term loss of principal and lower degree of liquidity in exchange for long-term appreciation.

Moderate Growth: A Moderate Growth investor values higher long-term returns and is willing to accept considerable risk. This investor is comfortable with short-term fluctuations in exchange for seeking long-term appreciation. The Moderate Growth investor is willing to endure larger short-term losses of principal in exchange for the potential of higher long-term returns. Liquidity is a secondary concern to a Moderate Growth investor.

Growth: Growth investors typically invest in equity investments. With a focus on growth stocks—that is, young or small companies whose earnings are expected to increase at an above-average rate compared to their industry sector or the overall market.

The information provided here is for general information only and should not be considered an individualized recommendation or personalized investment advice. The strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All investing involves risk including loss of principal. No strategy assures success or protects against loss. Past performance is no guarantee of future results. 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. The opinions expressed and material provided are for general information, and they should not be considered a solicitation for the purchase or sale of any security.