Use Our Unique TSOA Strategy to Manage Your 401k.
Begin with your employer sponsored 401k. Your employer-sponsored retirement account (401k, 403b, IRA, SEP, etc.) is your most important asset. You can’t afford to ignore it, because neglecting it could seriously damage your retirement.
At InvestBetterSpendSmarter.com (IBSS), we use a combination of three proven investment methods to manage our TSOA Freedom Portfolios :
- Optimal Allocation
You can apply these to your employer-sponsored retirement accounts. Three principles of freedom govern our approach, because we believe investors, regardless of their investment experience or skills, should be free from:
- High costs
- Worries about constant market ups-and-downs
- Time wasted on unnecessary research.
Of the three TSOA methods, Optimal Allocation is the most important strategy. This is because it determines the percentage of your account or assets that you should own in equities versus the percentage you should own in bonds (or bond-like investments). It has been proven that asset allocation is the most important factor in determining the return your portfolios can achieve. At IBSS, we use Optimal Allocation to reflect the best asset allocation for each portfolio depending on your financial situation, risk tolerance, and risk preference. It is up to you to adjust and customize our suggestions to best serve your particular needs.
Selection is about picking the better mutual funds, Exchange-Traded Funds (ETFs – similar to buying a stock), stocks, bonds, Real Estate Investment Trusts (REITs), Master Limited Partnerships (MLPs), utility funds, and so forth from among the thousands of choices. We research many sources to find what we believe are the “best-of-the-best” when constructing our portfolios. Typically, we use about 5-8 mutual funds, 3-8 ETF’s and 10-25 individual stocks in each of our portfolios.
Timing relates to whether or not a certain investment, and how much of it, should be owned in the portfolios during a certain timeframe or economic period. The decisions for timing the ownership of which mutual funds, ETF’s, stocks, or bonds, and how much of each depends on continually changing economic and market conditions. Our Tactical Timing methods allow our TSOA Freedom Portfolios to make quick adjustments. One example of this is owning some conservative money market funds for a large portion of our portfolios during periods of poor economic conditions or major stock market corrections due to recession cycles. In addition, we raise or lower the percentage we hold in our investment choices as changes occur in the projected profit expectations or in the stock market’s over-valuation of those choices.
TSOA Freedom Portfolio Models
The dynamic interaction of these three proven investment methods make TSOA Freedom Portfolios unique and effective in helping you to invest better. Click here to see our current model portfolios for employer-sponsored retirement accounts and check back often for any changes to the allocations (which will be noted in red). We look forward to helping you apply our free TSOA Freedom Portfolios models to your employer-sponsored retirement accounts.
Your IBSS Team