Steve and Anne

Young Couple

Saving for Retirement

Young accumulators leverage Track My Portfolios to build wealth.

Steve and Anne, a young couple with little savings, but actively saving for retirement in their 403b and 401k’s. They each have a portfolio within their employer's retirement savings plan, contributing enough to get the employer match, and a joint short-term fixed income fund for reserves.

Originally, both took the default option for their plans, a targeted fund. They eventually realized that a targeted fund does not align with their long-term plans, since they view retirement portfolios as somewhat perpetual – there is no need to have more ‘less-risky’ investments at retirement.

They moved beyond targeted funds and now have broad market equity, fixed-income and stable value funds in each portfolio - automatically rebalancing each year. However, they recognize the limitations of annual, automated rebalancing – what happens when equities experience a bull market and then pulls back? They could possibly lock in their gains one or more times during the calendar year; they want that capability.

The ebb and flow of the markets brought them to TMP. They want to grow their wealth smartly, with limited risk. TMP offers them just that. They can modify their personal threshold, the setting that controls when alerts generate within the system to help temper their risk. Both Steve and Anne recognize the benefits of letting advancing asset classes continuing to advance, but also recognize that a systematic, agnostic reminder to rebalance offers them the best opportunity to build wealth. They since turned off their automated rebalancing within their employer plans and instead let TMP do all the tracking.

Steve and Anne learned rather quickly, forgoing the circuitous route of discovering ‘new ways’ to invest and building a solid foundation using broad market funds and rebalancing when applicable.

Track My Portfolios helps Steve and Anne build wealth by locking in gains – selling high and buying low while simultaneously managing their risk by rebalancing at the right time.