Can RAA incorporate existing positions in stocks, mutual funds, and bonds?
We can incorporate existing holdings. This is mostly recommended where you have good reasons to retain them, such as a low cost basis and a desire not to trigger a taxable event. Holding individual stocks typically adds risk without adding return, so it’s not ideal, but we recognize that you may have excellent personal reasons for doing so, and this is not a problem. These assets can simply count towards the appropriate asset class allocation in your portfolio.
