I’ll give you a few seconds to open up your last brokerage statement. Looks good, right? The rebound in stocks has been amazing since the end of the Great Recession. And after roughly a decade of compounding, our portfolio values should be sitting pretty and you should have a lot more money than when you started. Having higher balances is enough to make even the most hardened market pundit smile.
But there is a downside to all those gains in our IRAs: 401ks and taxable accounts.
Thanks to those rising portfolio values, we may be exposing ourselves to too much risk. It’s an easy fix, but one that needs to be done in order to bring our portfolios under control.