Press Release: Michael Egan Gives Us 3 Financial Planning Rules of Thumb


Contact: Hope Katz Gibbs, founder
Inkandescent Public Relations,
Cell: 703-346–6975

Washington, DC, March 6, 2015 — “When it comes to taking control of your financial future, having a handle on a few basic rules of thumb is the key to success,” believes CERTIFIED FINANCIAL PLANNER™ Michael Egan, a partner at Egan, Berger & Weiner, LLC.

Last year was a great year for large-cap US stocks (the S&P 500) — the index was up 13.7 percent — yet many individuals are wondering why their portfolios did not come close to that rate of return.

“My clients want to know whether they should be more aggressive, and whether they should get rid of bonds or international stocks,” says Egan.

Before doing anything, keep in mind these 3 Financial Planning Rules of Thumb:

  • Rule #1: Stay diversified and do not chase returns. Historically that has worked very well. You may never get the best returns, but typically you will get what you need to meet your goals, usually with significantly lower volatility.
  • Rule #2: Stay within your risk tolerance. Chasing returns usually upsets or dramatically alters the portfolio volatility potential. Most people do not even notice volatility when the market is going up, but what about when it’s going down? The S&P 500 lost 49 percent of its value between March 2000 and October 2002. It also lost 56 percent from October 2007 to March 2009. And let’s not forget about the 22 percent drop in one day in 1987. Would you be comfortable with that drop and be patient enough to let the portfolio recover without selling?
  • Rule #3: Now is the time to be self-disciplined, stick to your plan, and re-balance. Based on 2014 growth, most people are now overweight in large-cap US stocks and real estate. Take the overweight positions and redistribute into the areas where you are probably underweight (for example, international and emerging markets stock). Sell things as they are going up and buy things as they are going down.

As always, your financial adviser will be able to address any questions or concerns you may have.

Source: Dates and percentages courtesy of

Click here to learn more: /

To schedule an interview with Michael Egan, contact Hope Katz Gibbs at, or 703-346–6975.

Michael P. Egan, CFP®
Financial Planner / Partner

  • Founding partner of Egan, Berger & Weiner, LLC
  • 24 years of experience in the financial services industry — as a mutual fund analyst, accountant, and financial planner
  • Graduate of George Washington University, with a degree in finance
  • Hosted a weekly radio show on financial planning in the Washington market.
  • Presenter on retirement planning for Fairfax County Public School’s Adult and Community Education
  • Active member of the Financial Planning Association (FPA)
  • The son of Irish immigrants, Egan has been married to his wife, Terri, for 20 years, and they have two daughters, Amanda and Shannen. Originally a native of Connecticut, Egan moved to Northern Virginia in 1990. He is an avid New England sports fan and roots passionately for the Red Sox, Patriots, Celtics, and UCONN Huskies.
  • Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.