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Forbes
11 hours ago
- Business
- Forbes
16 Strategies To Keep Your Retirement Portfolio Growing And Balanced
A successful retirement strategy doesn't stop at setting up a portfolio or savings account. It requires regular attention and thoughtful adjustments over time. While the "set it and forget it" mindset may seem convenient, it can also prevent you from realizing alternative investment opportunities or leave you vulnerable to increased risk. Staying engaged, reassessing goals and responding to market changes are key to building long-term financial security. To help you stay on track, 16 members of Forbes Finance Council share smart, actionable tips for maintaining a well-balanced and growth-oriented retirement portfolio. 1. Stay Engaged And Adjust Regularly You shouldn't treat your retirement like a crockpot; you should treat it like a business. It's important to check in every quarter and adjust based on what's happening worldwide and where the money's moving. You must use smart tools that track trends and save money by keeping your taxes low. The old passive way is out. Today, it's about being engaged, staying sharp and shifting smart. - Karla Dennis, KDA Inc. 2. Create And Follow A Financial Plan Wealth-building and retirement preparation require a financial plan. You should avoid a "set it and forget it" approach to prevent missed opportunities. Regular review ensures alignment with goals, especially after life changes. Annual evaluations encourage engagement and empower decisions. Thoughtful planning secures lasting financial stability. - Sean Gould, Waddell & Associates 3. Review And Rebalance Quarterly Investors should review their portfolios quarterly to assess whether values align with what was laid out in their plan and rebalance as needed to keep within plan parameters. It's a good opportunity to do a quick review of what is going on in your life as it happens and changes. Retirement plans are not one-time builds to just forget them after. They are living plans that get reviewed and adjusted as life happens. - Shawn Maloney, Retire Wise, LLC 4. Stick To Strategy With Annual Reviews You need to remember that investing for retirement is investing in your long-term financial future. You should set the investment strategy that suits your risk tolerance and don't allow emotions such as greed and fear to interfere with that long-term strategy. Annual rebalancing helps to correct 'drift' away from your long-term strategy. - Sonya Thadhani Mughal, Bailard, Inc. 5. Explore Global Investment Opportunities They must think internationally. There are investment opportunities globally that can prove profitable beyond a domestic retirement account. While it can seem daunting, they should start trading in foreign currencies on a small scale. Doing so expands investment possibilities and makes for a more resilient portfolio. - Rahim Madhavji, Knightsbridge Foreign Exchange 6. Use Dynamic Glide Paths The key is to look beyond rebalancing and use dynamic glide paths. You should adjust equity exposure not just by age, but by real-time market conditions and personal spending behavior. It's a smarter way to grow while managing sequence-of-returns risk. - Sumeet Grover, UFCU Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify? 7. Combine Passive And Active Models One strategy is to use a passive index core model with actively managed satellites to be opportunistic and move away from overpriced asset classes. Once your model is built, you can automate rebalancing to maintain risk exposure. - Christopher Foder, CExP, Meridian Financial Associates 8. Question Traditional Portfolio Models A smart strategy is to work with an advisor who questions outdated models like 60-40 portfolios, the 'endowment model' and overreliance on treasuries or tech stocks. We're in a generational regime shift—true diversification now requires alternatives and adaptive thinking. Many advisors lack the tools or mindset to keep up. You must choose one who evolves with the times to keep your portfolio positioned for long-term growth. - Brian Lasher, Euclid Harding LLC 9. Treat Your Portfolio Like A Business Investors must treat their portfolio like a boardroom: Underperforming assets don't get tenure; they get fired. You should audit allocations quarterly against forward-looking macro shifts, then redeploy capital with surgical conviction. Discipline eclipses hope; management outclasses memory. - Terry Chen, Modulate 10. Add Alternatives For Higher Growth I recommend adding alternatives to the portfolio allocation, such as startups, to ensure uncorrelated risk and access to growth opportunities that exceed the market. Investors should look at what early-stage companies do in their industry and leverage their domain expertise to make informed investment decisions. - Andrew Izyumov, 8FIGURES AI Investment Advisor 11. Protect Your Growing Assets A key strategy is to regularly assess liability exposure as your portfolio grows. Then, you can integrate powerful asset protection tools—like offshore trusts—not just for security, but for flexibility. Smart investing includes not just growing your nest egg but protecting it against lawsuits and unexpected claims. - Blake Harris, Blake Harris Law 12. Redirect New Contributions Strategically You should strategically use new contributions to achieve long-term portfolio goals. When certain asset classes move away from your target range, you can direct new investments to restore balance. Instead of selling one asset (which could create a taxable event) and buying another to rebalance, it might be optimal to redirect new capital additions more efficiently. - Martin Jarzebowski, CFA, Federated Hermes 13. Schedule Regular Advisor Check-Ins One simple but powerful tip is to schedule regular check-ins with your advisor. Life changes, markets shift and goals evolve, so your retirement plan should too. These meetings create space to explore new strategies, rebalance your portfolio and make sure your investments still align with where you're headed, not just where you started. - Michael Foguth, Foguth Financial Group 14. Realign After Life Milestones I would suggest aligning portfolio modifications with life milestones, not the calendar. Instead of using scheduled evaluations, you should update strategically after important life events like a job shift, home purchase or childbirth. These events naturally change financial priorities and risk tolerance, making them perfect realignment triggers. This maintains investments responsive and relevant without frequent monitoring. - Neil Anders, Trusted Rate, Inc. 15. Diversify With Self-Directed IRAs You should stay active and diversify! You might want to consider exploring self-directed IRAs for investments beyond the typical stock market, potentially hedging against volatility and expanding your portfolio's growth avenues. - Jason Craig, IRA Resources, Inc. (IRAR) 16. Reallocate Based On Economic Indicators You can implement a periodic reallocation strategy based on macroeconomic indicators and asset class performance. At our office, we view active oversight, not overreaction, as essential to preserving intertemporal balance and compounding growth across shifting market cycles. - Alfonso Cahero, Cahero Family Office The information provided here is not investment, tax, or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
Yahoo
18-05-2025
- Business
- Yahoo
New GOP tax bill: Changes you need to know about
Republican lawmakers are working to make President Trump's 2017 Tax Cuts and Jobs Act (TCJA) permanent. KDA CEO and founder Karla Dennis joins Wealth with Brad Smith to outline what could change under the new tax legislation. To watch more expert insights and analysis on the latest market action, check out more Wealth here. Republican lawmakers are looking to push forward President Trump's tax agenda. The current proposal would make the 2017 Tax Cuts and Jobs Act permanent. Increase the child tax credit, raise the cap for state and local tax deductions and temporarily create a tax deduction for tips and overtime along with other provisions. Joining me now, we've got Carla Dennis, KDA CEO and founder. Great to have you here with us. So let's start with one of the key issues in negotiations. The limit on the deduction for state and local taxes known as SALT. What do people need to know about the SALT and the proposed changes? Well, right now they're proposing a to take the cap off of salt. Some of the lawmakers are saying taking it to $60,000. But this has been such a contentious issue in a lot of the high earning states like New York, California, New Jersey, because they feel like they are being penalized, not only paying higher state income taxes, but then they can't even deduct those because the cap has been at $10,000. So this would be a welcome change. What about changes to the child tax credit? How do you believe that that's going to work? The changes to the child tax credit is going to be beneficial because it's going to allow those parents to get a credit against their actual tax bill. That's always a win when you can have a tax credit versus a tax deduction. And I think that that is going to be a welcome change as well. Okay. So can we explain the bill's proposals for Social Security and what it means for filers as well? For Social Security, they're talking about no tax on Social Security income. So these are retirees that were living off of their Social Security and were not even expecting to pay any tax on that Social Security. So not taxing it now, regardless if you making other income is really going to help them and they will have more stability in their retirement years going forward. And so how does that help stretch some of the retirement dollars potentially? Yes, because when you're not having to pay that tax, that means there's going to be more money in your pocket. Retirees will not have to pay tax on the money that they're receiving, so they can actually live off of all of their earnings that they make and hopefully stretch their income longer to take care of basic needs, housing, living, food, and things of that nature. So the legislation also includes one of the president's promises to eliminate taxes on tips, but there's a lot of questions around exactly how it will work for some filers here. What do we know? Yeah, for taxes on tips, they're talking about not having any income taxes on tips. They're not clear as to how this is going to play out from an implementation perspective with actual employers. How are they going to segregate that income out? But definitely not having tax on tips is going to help the working class Americans, people that are working in these various industries that typically aren't paid that much to begin with. So this is certainly going to be a welcome change for those working Americans. So is this from what we understand an elimination on the front end where it's just not coming out of your paycheck or is there something that you have to file for later on in the year and after the kind of full year and season for tax filing commences? It's going to be an elimination at the paycheck level because there would really be a nightmare trying to do it on the back end because that would require employees to really understand what dollars were overtime, what dollars were not overtime and it's not reported like that on the individual's W2. So that would take a lot of overhauling. Right now it is slated to take place at the employer's end when they're actually administering the paychecks. Another inclusion, lastly is a plan to create a new tax advantaged money account for growth and management for children born between 2025 and 2028. How will that impact taxes? Yes. So you're talking about the My American Dream savings. This is very new and basically what it is, is to encourage Americans to start to save for things like buying a primary residence, to save for their education and to do it tax free. I think in this particular instance, they need to be clear on what the particulars are going to be because I always say the individuals, we want to make sure we understand the compliance so that this is going to work for everybody and not just the wealthy to top 1%. Carla, thanks so much for taking the time here with us today. Thank you. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
