Spring 2007 issue of Horizons

knowledge. commitment. value. CERTIFIED PUBLIC ACCOUNTANTS AND BUSINESS CONSULTANTS

Prudent investors, however, do not change their strategic asset allocation based on the relative short- term performance of each category of assets in their allocation. In other words, they do not necessarily buy more stocks when stocks are hot. A sound investment plan tries to obtain consistency of returns at a risk level the investor can tolerate. One key activity prudent investors do to manage risks is periodically rebalance their portfolio. Rebalancing brings a portfolio back to its original asset allocation mix and is necessary because over time some assets go up in value and others go down. This fluctuation changes your allocation even if you did not buy or sell anything. By rebalancing, you are more likely to achieve the risk and return objectives you originally established. Financial planning should be a lifelong process. You are running a marathon, not a sprint. It is important to stay disciplined and committed to your long-term plan. Only then may you realize your financial goals and objectives.

Questions? Contact:

Mike Ferman, CPA Partner RubinBrown Advisors 314.290.3211 mike.ferman@rubinbrown.com

RubinBrown Advisors may only transact business in any state if we are first registered, excluded or exempted from the applicable registration requirements. Follow-up, individual responses or rendering of personalized investment advice for compensation will not be made without compliance with applicable state registration requirements or an applicable exemption or exclusion.

6 u summer 2007 issue

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