Although it’s been a strong year for investors, recent market activity shows rising volatility as we approach year-end. While this can feel unsettling, it’s an ideal time to partner with your advisor to ensure your portfolio is built to withstand turbulence and positioned for future growth and tax efficiency.
The advisor advantage: Building portfolio resilience
A skilled advisor helps you build “shock absorbers” into your portfolio — reducing the influence of daily headlines and keeping you anchored to your long-term plan. Key areas we review include:
- Diversification check: Identifying and reducing overconcentration in any single stock or sector, which can magnify losses during downturns.
- Risk mitigation: Implementing strategies designed to protect capital so you aren’t forced to sell at inopportune times.
Strategic moves to consider now
You don’t need to exit the market. Instead, an advisor helps you make disciplined adjustments, such as:
- Rotation: Trimming positions that have performed exceptionally well and reallocating gains into areas offering better value and diversification:
- Small- and mid-cap stocks: Currently trading at attractive valuations.
- International stocks: After lagging U.S. markets for over a decade, they present renewed opportunity and enhance global diversification.
- Bonds/fixed income: High-quality bonds add balance and stability, offsetting stock volatility.
- Dividend-focused strategies: Adding or increasing exposure to high-quality dividend-paying stocks can provide a more stable return profile, offer a buffer during volatile periods, and contribute to long-term income generation.
- Asset allocation and rebalancing: Ensuring your mix of stocks and bonds still aligns with your goals and risk tolerance.
If your portfolio has drifted — such as stocks growing beyond your comfort level — we help you rebalance by trimming winners and adding to undervalued segments. This keeps your strategy disciplined and aligned with “buy low, sell high.”
Essential year-end planning for tax efficiency
Your advisor also guides you through important year-end steps that can reduce taxes and strengthen your long-term plan.
- Tax-loss harvesting
Selling investments at a loss in taxable accounts can offset gains realized earlier in the year. If your losses exceed gains, you may use up to $3,000 to offset ordinary income and carry forward excess losses to future years. - Strategic RMD planning
For investors age 73 or older, we can take Required Minimum Distributions (RMDs) from overweighted asset classes in tax-deferred accounts. If you don’t need the cash immediately, the proceeds can be reinvested in a taxable account to strengthen underweighted areas — making your required withdrawal more efficient.
An advisor brings clarity, structure, and proactive strategy to your financial life — helping you navigate volatility, optimize taxes, and stay aligned with your long-term goals.
To enter the new year with confidence and a well-positioned portfolio, contact your Signet advisor to schedule your personalized year-end tax and portfolio review.
IMPORTANT DISCLOSURE
This material is provided for informational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any security or investment product. All investing involves risk, including loss of principal. Private credit investments are illiquid and suitable only for qualified investors who can bear these risks. Past performance is not indicative of future results.
