We'll begin with you by reviewing your current accounts. This includes IRA, 401(k), 403(b), taxable brokerage accounts, 529, and others. This gives us a holistic view of your situation. We'll come up to speed on where you are and identify areas to improve.
Discussing big life events on the horizon, like a child entering college or a planned retirement date, is the next step. Getting a sense of your yearly cash flow living needs is also something we'll do together. And we need to understand your long-term financial goals.
We'll step through some scenarios to help us understand your tolerance for risk, in an effort to determine what investments are suitable for you. This process is important because people will often act differently in a crisis than they anticipate. We'll try to determine how much risk you can absorb while still feeling comfortable.
We're big proponents of simplicity and we will try to distill your account structure to the simplest possible form. We believe that simplicity leads to understanding, understanding leads to discipline, and discipline helps prevent behavioral changes at inopportune times (buying high and selling low).
Asset allocation is an investment strategy aimed at balancing risk and reward by carefully assessing a client’s goals, risk tolerance, and investment horizon. At One Day In July, decades of work by our Founder have led to investment models that are diversified and prepared for different market environments. Each portion of the portfolio serves a specific function for you.
Your One Day In July advisor will rebalance your portfolio on a schedule that makes sense with your asset level and our internal models. Rebalancing is an important ongoing process. Nobel Prize-winning American economist Harry Markowitz called diversification “The only free lunch in finance.”(1) Worth noting.
Your life will change over time. Your goals may change, your cash needs may change, the number of kids you have may change, your marital status may change. Keeping abreast of these developments in your life will help us work together to make sure you stay on track.
One of the benefits to passive investing is that it's, well, passive. We're not going to bombard you with "the next great trade" or world events that you have to respond to. In fact, we'll encourage you not to watch financial news or get caught up in the casino antics of the stock market. We'll help you mentally prepare for a future crisis or bubble: we'll train you for those scenarios ahead of time. But hiring us should help you to focus on other pursuits, whether they are work, hobbies, or family.
Funds: Once you sign on with One Day In July, your money will be held at Charles Schwab for investment accounts, Utah 529 for 529 accounts, and Matrix Trust for 401k plans.
Contact/Meetings: Many clients meet with us directly, but others across the U.S. “meet” with us via telephone. Clients should bring their full statements (not web printouts) to the meetings.
How to Find Us: One Day In July Offices
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Source: Barron’s, “The Importance of Diversification.” 3/16/19.