December 2020
401(k) Allocation

There are changes this month. 

We are resuming a fully-invested position in all portfolios as well as pivoting to a more diversified portfolio, leaning less toward tech and growth and adding to our Value weighting, small cap stocks, and even a bit of international!  It’s been a long time since we’ve seen such broad participation in a rally – and that is a bullish sign for markets over the long term.  Obviously, the positive news on the vaccines has spurred hope of a return to “normal” within our reach, and as a result, we are seeing participation in this rally from areas of the market that have underperformed all year – in fact for several years.  If this is to have staying power, we will need to see some amount of additional stimulus from the lame duck session in Congress and it would be a huge morale-booster to see those first vaccinations delivered to our front line workers.

As always, if you need any assistance in rebalancing your 401K plans or we have not yet done a “decoder ring” for you, don’t hesitate to give us a call at the office and we’

Just a little early planning tip – 401K maximum contributions and catch up amounts have remained steady for 2021. Regular 401K maximum contribution stays at $19,500 and the catch-up provision for 50 or older is $6,500.

If you have questions, please contact us.

MARKET UPDATE
FINANCIAL PLANNING
COLLEGE AND TAX PLANNING
GRAPHIC OF THE MONTH

To download the December 2020 Newsletter: CLICK HERE

(Click on the Image to enlarge it.)