Sample Newsletter

Sample Newsletter

July 2020

The sample email below represents what a Think 2 Retire newsletter subscriber will receive the first business day of each month.  As you can see, this e-mail contains suggested allocations for two retirement accounts (Chevron 401k and ETF Platform).

This is an example of a subscriber having retirement accounts with a current and past employer. Or spouses having separate retirement plans at their respective employers.

For simplicity, if a subscriber has 1 or more retirement accounts, the monthly Think 2 Retire suggested allocations will come in one email.

It’s important to understand that our pricing is designed to include spouses and/or multiple retirement accounts at the same price (see pricing).

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Steve

The month of July was a positive and welcome change.  The S&P 500 finished July with a 9.1% gain making its year-to-date return -13.3.  The Federal Reserve’s positive comments this week after it increased interest rates by .75% gave investors hope that inflation may be peaking and future rate increases may be more moderate than previously thought. The upbeat words by Fed Chairman Powell sent investors running back into stocks.

Last week’s strong market recovery cause the T2R 2.0 short-term risk indicator to flip back to positive.

Is this recent spike in prices the start of a new uptrend or simply a Bear market rally in an ongoing declining market? Time will tell. Think 2 Retire continues to be defensive.

The same old issues continue to trouble the market: inflation fears, interest rates, Russia & Ukraine, and global growth concerns. Corporate earnings have been coming in the past few weeks and have largely been more positive than expected. The market continues to have plenty to worry about.

As we discussed in May’s newsletter, on March 4^th, the T2R 1.0 risk management indicator (Longer-Term) turned Negative and remains Negative.

The T2R 2.0 risk management indicator (short-term) which had been negative, flipped to positive on July 28, 2022.

Remember, for AIA to suggest a total equity (stock) allocation, both risk indicators must be Positive.

The market’s recent volatility helps explain why the Think2Retire risk management process requires both indicators to be positive to suggest reallocating money back to the equity markets. In volatile markets, the T2R 2.0 indicator can more easily switch or change. However, the T2R 1.0 indicator acts as a stabilizing force.

Both increasing and decreasing market cycles contain short-term price spikes that can entice one to jump in or out. The risk management indicators are designed to help avoid these traps.

This condition still suggests the probability of near-term market volatility continuing. Therefore, your allocation away from equity/stock positions is still warranted. All subscribers are suggested to continue with the current defensive posture, which means reducing or eliminating equity exposure in favor of either bonds or cash per the AIA allocation.

Due to the current inflationary environment, your Bond allocations should consist of shorter-term bonds more resistant to rising interest rates.

See reallocation detail below.

If you haven’t already allocated your account to the recommended choices, we suggested you perform these transactions as soon as possible.

This reallocation away from AIA equity sector positions will remain in effect until a future Alert or monthly Newsletter reestablishes new AIA Equity positions.

Note: This Alert concerns only the portion of your portfolio allocated to AIA, which is typically a percentage of the total. This is defined by your individual risk tolerance. The portion of your portfolio not allocated to AIA positions should already be invested in more secure investment areas such as bonds, cash, or fixed accounts. See the Adaptive Investment Allocation (AIA) video in our video library.

Suggested Allocations for July 2020

401k -- Chevron 401k

• • BTC Equity Index
  • BTC Extended Equity Market Index
  • Cash

AIA Exchange Traded Funds (ETF) suggestions

Portfolio Weighting & ETF Symbol

             Symbol     Sector/Asset Class

• XLK           Technology
• XLE            Energy
• IYC            Consumer Discretionary
• XLI             Industrials

Allocations to the above Mutual Funds and/or EFTs should be in similar amounts.

Depending on your individual risk level you may choice to hold a portion of your account in safe areas. For this you may consider Money Market Account, Short Term Bonds, Fixed Annuities or CDs.

Fixed Account Option: SNOXX (Charles Schwab) or SPRXX (Fidelity) The percentage weighs depending on your individual risk level.

Please go to your investment account to make the allocations updates at your earliest convenience

Thank you,

Andy Barkate MS

Publisher Think2Retire

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