Has Your Retirement Account Recovered?

May 15, 2011 - PRLog -- Despite recent corrections in the market, not all investors have more money than they did four years ago. Appropriate asset allocation and continued savings combined with active portfolio management are necessary to help your nest egg recuperate from the recession.
Retirement accounts held about $8.7 trillion in the third quarter of 2007. However, 401(k)s and IRAs then lost 31 percent of their peak value and held just $6 trillion by the end of the first quarter of 2009. Retirement accounts finally rebounded to their peak value, again reaching $8.7 trillion, in the first quarter of 2011, according to calculations by Urban Institute researchers Barbara Butrica and Philip Issa.  However, if inflation is factored in, retirement account balances are still below 2007 value.

The Urban Institute estimates that the majority of the recovery (63 percent) is due to appreciation in stocks since the first quarter of 2009. Not all investors, however have experienced enough growth to completely recuperate from their losses without continued saving. While the S&P 500 Index gained 104 percent between the market low and the first quarter of 2011, an investor who had $100,000 invested in equities on Oct. 9, 2007 now has a portfolio value, including dividends, of $91,511, according to a recent T. Rowe Price analysis. Investors with a more balanced allocation of $100,000 to a 55 percent stock and 45 percent bond portfolio over the same time period recouped their losses by October 2010. More conservative investors with a 45 percent stock and 55 percent bond allocation of their $100,000 retirement portfolio recovered even earlier, first crossing the threshold in April 2010.  

These statistics show how having the proper asset management is critical for growth and protection. Active portfolio management allows for the necessary movement of assets between stocks, bonds, cash, gold/silver, etc... as market fluctuations occur.  Working with the proper financial advisor not only can provide stability in a bear market, but can result in profits when the “buy-and-hold” advocates experience deep loses.

For more information on Active Portfolio Management, contact John Dubots at 888-605-8363,  http://www.jpdcapitalmanagement.com

Investment Advisory Services offered through John P. Dubots Capital Management, LLC, CA License # 0822926

http://www.youtube.com/watch?v=wN7oZwnmrSo



# # #

John P. Dubots Capital Management, LLC is a Registered Investment Advisory firm located in Temecula, California. We provide our clients with financial services and access to products from many of the nation’s "leading" investment companies. Our representatives work hands-on with clients to help investors meet their financial goals. Before we make recommendations, we first need to fully understand your needs and goals. Together, we evaluate and plan for long-term wealth creation and estate preservation, making use of a wide variety of investment products. Our Clients consist of retirees, pre-retirees, individuals, sole proprietors, partnerships and corporations. We assist more than 150 individual and corporate investors to achieve their investment goals. We have been in business since 1991. We would enjoy the opportunity to discuss with you how to make your financial dreams a reality. http://jpdcapitalmanagement.com