Part of planning for the end of the calendar year includes a thorough review of your investment plan. One of the problems that many people face is discovering they may have not paid as much attention to investment planning as they originally thought.
While the stock market has stayed fairly strong through most of 2014, it may still be a good time to re-evaluate your portfolio, especially if your goals have changed and you have yet to adjust your investment plan.
Here are a few topics to cover with your Financial Advisor before year end.
Your Retirement Income Strategy
If you are one of the thousands of people who will be planning on retirement during the latter part of 2014 or anytime during 2015, this is a good time to take a look at what you can expect for retirement income. Keep in mind that many investors tend to be slightly more conservative with their investment options as they approach retirement. This might not always be the best approach when you consider that being too conservative can hurt your portfolio's ability to deliver the growth you may need during retirement.
For those already retired, it’s a good idea to review your retirement income strategy at least annually. You may not need as much income as you did last year, depending on your goals and future plans.
How Diversified does Your Portfolio Need to Be?
One of the key decisions you and your financial advisor will have to make is determining how diversified your portfolio is and what changes should be made. It can be easy to stick with a "vanilla" portfolio of investments in one or two sectors. But keep in mind that the less diversification you have in your portfolio, the more likely you are to suffer losses if those specific sectors or asset classes take a hit.
Your financial advisor should be fully aware of your objectives and help you with your investment planning and allocation.
The Impact of News on Your Portfolio
It can be far too easy to get caught up in all the news swirling around: domestic and international issues, the Federal Reserve and jobs numbers can impact the economy and markets. Consider taking a step back and avoid getting caught up in the sensationalist news which is often used to attract viewers.
Instead, let your financial advisor stay on top of the news and let you know if there are any developments that warrant changes to your investment plan and portfolio.
While doing your year-end planning and reviewing your existing portfolio there are a number of factors to consider. Your risk threshold, your goals for retirement income, portfolio diversification and your tax bracket are factors that need to be weighed carefully to determine if changes to your portfolio are warranted. Sit down or speak with your investment advisor to review your investment plan before the end of the year is here.
Call one of our Wealth Managers now at (800) 541-7774 to review your portfolio and investment plan. If you do not have an investment plan, we’ll be happy to build one with you. Get started by answering a few short questions here.
