ELC Advisors

Why Asset Location Matters Just as Much as Asset Allocation

Most investors understand the importance of asset allocation - how you divide your portfolio between stocks, bonds, and other assets. But far fewer consider asset location - which accounts hold which investments.

The 4% Rule: Does It Still Work for Retirement Withdrawals?

One of the most widely cited retirement guidelines is the 4% rule—the idea that retirees can safely withdraw 4% of their portfolio in the first year of retirement, adjust for inflation annually, and have a high probability of not outliving their savings over 30 years. But with rising lifespans, volatile markets, and low bond yields, many wonder: Is the 4% rule still valid today?

How Low-Cost ETFs Can Improve Your Investment Returns

Investing isn’t just about picking the right assets—it’s also about keeping more of your returns. One of the easiest ways to do this? Low-cost ETFs (Exchange-Traded Funds). While fees might seem small at first glance, they compound over time just like your investments. Choosing funds with lower expenses can mean tens or even hundreds of thousands of dollars more in retirement—without requiring you to take on additional risk.

Stocks vs. Bonds: Understanding Risk and Return

Every investor faces a fundamental question: How should I balance risk and reward in my portfolio? The answer often comes down to two core asset classes—stocks and bonds. While both play critical roles in wealth-building, they behave very differently. Stocks offer growth potential but come with volatility. Bonds provide stability but usually deliver lower returns. Understanding these differences is key to building a portfolio that aligns with your goals, timeline, and risk tolerance.

Why Long-Term Investing Beats Trying to Time the Market

One of the most common mistakes investors make is believing they can outsmart the market by buying low and selling high at just the right moments. While market timing might seem like a lucrative strategy, decades of research—and the experiences of millions of investors—prove that long-term investing consistently outperforms short-term speculation.