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Actions
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Taking
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Articles
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Asset allocation
How
your investments are divided between equities, fixed income and
cash investments will greatly affect your returns and risks.
Be sure your
allocation properly reflects your time horizon and risk tolerance.
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Meet with a
financial advisor to help you create an asset allocation and investment
strategy that is suited for your needs.
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Asset
Allocation
Financial
Market Indicators
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Equity diversification
Do
you own enough different stocks to reduce the potential impact of
one poorly performing stock without owning so many that it is impossible
to monitor them?
Many advisors
suggest owning at least a couple of stocks in at least 4 to 6 industries.
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Meet
with an investment professional to review your current stock holdings. |
Investment
Portfolio Diversification
Building
a Stock Portfolio
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Review of
individual stocks
Review
your thoughts on why you originally bought each stock to determine
if the reasons are still valid.
Have there been
fundamental changes in the company's business or changes in its
industry that should prompt a deeper analysis of the company.
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Meet
with an investment professional to review your current stock holdings. |
Building
a Stock Portfolio |
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Bond maturities
Remember
that bond values change in the opposite direction of changes in
interest rates.
Should you adjust
your bond maturities in light of the current interest rate environment?
Consider using
a "ladder of maturities" approach to improve your overall yield
without taking excessive interest rate risk.
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Meet with an
investment professional to review your current bond holdings and
to evaluate your level of interest rate risk.
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Investing
in Bonds
Interest
Rate Risk
Investing
in US Treasuries
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Taxable vs.
tax free bonds
Is
your tax bracket high enough to justify owning tax-free bonds instead
of taxable bonds?
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Investing
in Municipal Bonds
Comparing
Taxable and Tax-Free Yields
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Cash positions
Short-term
interest rates are very low.
Examine whether
using CDs could improve the return on funds currently in money market
funds or savings accounts. Factor liquidity needs into your decision-making.
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Review
the rates on checking accounts, savings accounts and Certificates
of Deposit. |
Choosing
the Right Accounts for Your Cash
Building
a Ladder of Savings Certificates
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Tax issues
Are
there capital losses you can and should take? Net capital losses
can offset other income up to $3000 with unused amounts carried
forward.
When considering
selling a stock for a gain, do you consider that holding the stock
for more than a year will enable you to use the lower long-term
capital gains tax rates?
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Understand
the Tax Implications of Financial Decisions
Taxable,
Tax Advantaged, Tax Deferred and Tax Free
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Broker review
The
recent stock market has not been easy for anyone, including your
broker. However, as a client, you deserve attention and service.
Does the broker
stay in touch?
Has the broker
been responsive to your inquiries?
Has there been
any litigation against the broker?
Do you believe
your broker can provide the expertise and service you need?
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Meet
with an investment professional and ask the right questions to make
sure your advisor is the right one for you. |
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Mutual funds
Are
your reasons for selecting your mutual fund investments still valid?
Have there been
changes in the nature of the fund or the portfolio manager that
should be evaluated?
Are there other
funds within the "mutual fund family" that are better suited for
your needs and that you could switch to without incurring another
commission?
Are you considering
using "dollar cost averaging" as a way to make new mutual fund purchases?
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Meet with an
investment professional
to review your current funds and identify any changes that may be
appropriate.
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Investing
in Mutual Funds
Dollar
Cost Averaging
Mutual
Funds and Income Taxes
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Investments
within IRAs
Have
you included your IRA holdings in determining your overall investment
strategy?
If you own CDs
within your IRA, have you chosen maturities that provide the best
returns?
Are the mutual
funds, stocks or other investments in your IRAs still appropriate?
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Review
the rates on IRA Certificates of Deposit. |
Asset
Allocation
Building
a Ladder of Savings Certificates
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Investments
within employer retirement plans
Have
you included your retirement plan holdings in your overall investment
strategy?
Are the investments
or mutual funds currently in your plan still appropriate?
Have you recently
reviewed how current additions to your plan are being invested?
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Meet with a
financial advisor to determine how the investments within your employer
plan fit within your overall investment strategy.
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Take
Full Advantage of Your Employer's 401(k) Plan |
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Periodic
monitoring
Do
you regularly review your investments and your investment strategy?
How has your
portfolio performed recently, both on an absolute basis and in comparison
to general market conditions?
Consider creating
a written "investment history" with reasons for your investment
decisions. It could help identify what is working and what is not
working.
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Meet with an
investment professional to analyze how your investments have performed
and how they fit within your total financial plan.
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The
Personal
Balance Sheet can be downloaded and printed to help you track
the results of your investments and your total financial condition. |
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