According to Investopedia, a Melt Up is a “dramatic and unexpected improvement in the investment performance of an asset class or broad market index, driven in part by a stampede of investors who don't want to miss out on its rise, rather than by fundamental improvements in the economy.” The current record setting run in the equity markets seems likely destined to end the year in strong fashion, and in my opinion, fits this definition. The full year returns that will show up on December 2019 brokerage statements will be enhanced by the sharp sell-off the equity market experienced in the 4th quarter of 2018. But, even considering that fact, there is no question 2019 has been a good year for the broad markets, and some stocks have had spectacular runs.

Heading into the end of the year I often hear, and read, about aspects of finance that are readily overlooked. Budgets, charitable giving, credit cards, insurance, employee benefits, retirement contributions, property taxes, and the list goes on. Admittedly I used to not give ample attention to the majority of my personal financial life. Thankfully, I’m better educated on the topic than I used to be. I’ve grown to call this annual exercise the Personal Refi; partly because some items are legitimate refinance items, but also because we are simply revisiting our personal finances. Allow me to share some refinance items that my family is practicing as we head out of 2019 and into 2020.

What is portfolio rebalancing? Put simply, the act of rebalancing ensures that your portfolio stays within your desired allocation over time. This is necessary because the assets in your portfolio will naturally change in value over time and the percentage relationship with one another will change as a result.