Current Allocations

Right Now, you have 400000 in stocks, 100000 in bonds, and 5000 in cash totalling 505000. This means 79.2 %of your assets are in stocks, 19.8% are in bonds, and 1% of your assets is in cash.

Based on your age, income, and conversatons about your risk tolerance, we think you should hold 90% in stocks, 10 % in bonds, and 6.6% in cash.

We want you to sell bonds and use those proceeds to buy stocks because stocks will appreciate in value more than bonds will. This will enable your wealth to grow at a faster rate, giving you more money to cover your retirement and future expenses. Stocks are riskier in the short-term as the stock market moves up and down unpredictably, but in the long-term, we’re confident stocks will be worth far more in the future than they are today. This makes them a safe long-term investment, and owning more of them than you currently do will allow your assets to grow at a faster rate. You’ll still hold some bonds to avoid being too aggressive, but based on your financial profile, you can safely afford to be more aggressive with your investment strategy than you are currently.

We recommend holding more cash than you currently do now. We think it’s smart to hold 3 months’ worth of expenses in cash to cover sudden expenses or emergencies.

Actions to Rebalance

• Buy 54500 of stocks
• Sell 49500 of bonds
• Buy 28330 of cash

Notes

This will change as you age. As you age, we’ll have to sell stocks and buy bonds. We recommend buying the S&P 500 for stocks, and 10-year treasuries for bonds. You can connect your investment accounts to have us do this for you.

Credits Cards

If you pay off your credit card now, you’lll pay X total. If you wait a month, it will cost X. In 6 months it will cost Y and in 12 months it will cost Z. Delaying this could cost you significantly while also damaging your credit score. We recommend paying your statement balance completely, not just the minimum balance. Although the minimum balance avoids fees, you’ll still pay interest, which adds up quickly. We highly recommend cutting spending as much as you can over the next few months to avoid unwanted interest and fees as well as damage to your credit score.

Other Debts

For these debts, continue making your scheduled payments.

Why

This is because the interest rate on this debt is relatively low, meaning you would not save very much by paying it off early, and you are likely to earn more over time by investing that extra money instead of using it for additional payments.

To change your income and debt variables, and run the model again, return to the Profile tab, make any adjustments you wish, and regenerate your reports using the Checklist tab.