As you’ve seen in the past year I have taken on a new role as Vice Chairman of Edelman Financial Services.
We just sent our clients our annual Year in Review letter and outlook for the new year. This letter is packed with valuable information and insights so I wanted to share it with you, too. Now’s your chance to see exactly what we told our clients as we get underway in 2015, including the remarkable thing that happened over the last two weeks of 2014, our take on the outlook for 2015 (including some reasons to be concerned) and the best approach for your portfolio in the new year.
It’s a long letter so I’m providing a summary below, but please, do yourself a favor and take a few minutes to read it in its entirety here.
- 2014 was good for big company stocks, but most other stock sectors fared far worse. Energy, commodities, foreign stocks, natural resources and emerging markets all fell in 2014.
- While a diversified portfolio earned less, its goal is to manage risk, not maximize returns.
- Amazingly, all the sectors that were down for the year displayed remarkable gains in the final two weeks of the year — demonstrating the importance of being patient and maintaining your globally diversified portfolio.
- 2015 is looking good, but there are some worries: If interest rates rise, as many expect, bond prices could fall, some of them sharply. Regulators are also warning consumers about variable annuities and non-traded REITs, two products that produce big commissions for sales reps.
- The best approach for the new year is to maintain cash reserves, stay diversified, remain focused on your long-term goals and recognize that 2015 may see higher levels of volatility than we experienced last year. Let our diversification and rebalancing strategies do their job for you!
Read the entire Year in Review letter here.
At Edelman Financial Services, we’re here for you!
If you have financial questions, need to speak with a financial advisor or want a second opinion on your current portfolio, our team at Edelman Financial Services is here to help. At Edelman Financial Services, we manage $14.4 billion for more than 26,000 clients1 – people just like you. And as you can likely gather from our Year in Review letter, we’re devoted to taking great care of our clients and helping each and every one enjoy financial and personal success.
P.S. Calling all smart couples! I’ll be sharing an exciting announcement with you in the coming weeks involving several special events we’re planning on the topic of couples and retirement — and I’m asking for your help!
What are the burning questions you’d like answered when it comes to planning a happy, secure retirement with your partner? Click here to get more details and to ask your question. I value your input and it will help me to create content that focuses on solving your challenges, answering your questions and helping you achieve financial freedom with your partner. So, ask away! I look forward to hearing from you…and stay tuned for more event details coming soon.
1 As of December 31, 2014