0:00 spk_0

We got to get to what investors want to know about their portfolios, and I’ve got a nice little list here. Let’s just briefly review tax loss harvesting. You can, if you have a security or a stock that you own right now, you can actually sell it and then you can take that loss and possibly offset your tax bill for next year, but you’ve got to be careful not to buy it back for 30 days. Any thoughts on that? Right?

0:22 spk_1

So, it’s something that as a wealth manager, an asset manager, that’s what you do, right? You should take advantage.So individual investors should take a look at their portfolio and take advantage of any loss. And if you want to take a gain, you’re gonna take this loss, write it off against the gain, uh, and then reallocate some of that money into either a new sector or like Jared said, you’re gonna wait 30, 31 days and then reinvest it if you like the name that you sold. All right,

0:45 spk_0

now let’s talk about rebalancing and reassessing portfolio risk because that’s what investors should be focused on right now.

0:51 spk_1

Right. So you really have to take a look at the portfolio.And you have to see whether you’re out of balance right in terms of have prices have stocks gone up in value that they’ve now created a portfolio that’s not in balance or at least not in balance the way that you want it to be. So you should always look to, uh, to, to fix that. Now it doesn’t mean you have to sell something the way I do it is I add new money to the sectors that are now underweight and then I bring the whole thing back into balance again. So you could do it a couple of ways, that’s just the way I do it.

1:17 spk_0

All right, now let’s talk about risk tolerance and time.Horizon very key concepts that we talk about in trading and investing here. I know you spent a lot of time on this, so break it down for us.

1:27 spk_1

So you really want to talk about time horizon, who you are and who the money is for. You might be in your 60s or 70s, yet the money we’re talking about is for children or grandchildren that might be out 1520, or 25 years. And so it should take on a different risk profile than if it were for you at that stage in your life. That being said, you should also be aware.Of the of the of the score, the risk score of not only the portfolio but the individual names within the portfolio because every stock, every ETF has its own risk score from 1 to 99. Anything above 71 is further out of the is beyond the S&P in terms of risk, right? It gets riskier than the S&P 500. Anything less than 71 becomes more conservative. So you just need to understand how the different names in the portfolio interact to give you anOverall score

2:14 spk_0

and also something key here, some older investors might need cash flow and so that comes into dividend needs, cash needs, and that’s something to start thinking about for quarter for the firstquarter. Yeah,

2:26 spk_1

of course it should be something that you’re always thinking about again depending on who you are and where you are in the life cycle, right? Right now, you know, you might be 60 but fully employed and you’re not looking for dividend income. You’re not looking for the for the portfolio to generate income you’re going to take, so you.And then you want to have it reinvested. If you’re even take, if you have a portfolio that generating a lot of income, you just want to reinvest it. If it’s income you need or want, then you should figure out, you know, what it’s going to spin off. You, you, you can expect to spend 4% of your portfolio and never run out of money, so a million dollars portfolio would, would, would, you’d take out $40,000 a year. So you’d want to get dividends that would pay about $40,000 a year and then that could go on forever and you’d never run out of money.