Categories: Financial Facts

Test Your Knowledge – Question 13

Christy Kohnle

What is the purpose of “rebalancing” a portfolio?

1. Maximizing short-term gains

2. Restoring the portfolio to its intended risk level

3. Eliminating all underperforming assets

4. Increasing the number of asset classes

Answer:

2. Restoring the portfolio to its intended risk level

Rebalancing brings allocations back to target levels, ensuring the portfolio doesn’t drift into an unintended risk profile.

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Test Your Knowledge – Question 12

Which of the following strategies is generally considered the most effective for eliminating high-interest credit card debt? 1. Paying the minimum amount due on all

Did You Know? – The Story Behind Our New Name

The Story Behind Our New Name—”Richland Ave Financial” Having received approval during voting at the 2024 national convention, the FWB Board of Retirement and Insurance

Did You Know? Our website—RichlandAveFinancial.com—is a valuable resource for answers to common questions and access to important tools and forms.

You can find clear explanations of investment allocation options and retirement contribution types, as well as practical tools like mortgage and savings calculators. There are