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The Oxford Club: Save More and Re-evaluate Your Portfolio

In a recent article, investors were told about the three simple steps they needed to take to achieve higher returns on their investments. The article’s writer was Alexander Green, Chief Investment Strategist for the Oxford Club. His advice began with step one, to save more. Step two was to cut your investment costs and finally, step three was to rebalance your portfolio.

Step 1

Today, with only 24% of Americans having saved $1000 for retirement, its expected they’ll be forced to solely rely on a meager Social Security benefit to survive. The average Social Security payout for an individual is only $1360 per month. Compared to the average pay of $2916 a month, that’s a reduction of nearly $1600, more than half is gone. It’s doubtful anyone can live a full life on that kind of money. A couple that draws a SS benefit gets an average payout of $2069. American should save more money if they hope to retire comfortably.

Step 2

Many investors are far too dependent on the investment or fund manager. The cost for using them can equal as much as 42% of your return if you’re earning 2.4% and the investment’s expense cost is 1%. Essentially, subtract the advisor’s earnings from yours. With three out of four advisors being outperformed by unmanaged benchmarks, you could do far better investing on your own.

Step 3

In the last few years, the stock market has done very well. Now, is the time to rebalance your portfolio. Sell the stocks in the asset class that have appreciated the most and buy more of the asset classes that have lagged behind. With individual stocks, its best to sell from your winning asset class and buy more of the laggards when the market is on an upward climb as it is currently.

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This entry was posted on January 30, 2018 by .