Volume 3 Issue 2008

Even when you have a financial plan in place, the planning process isn’t over. At least once each year, you’ll want to meet with your financial professional to review how your investments are allocated and performing, as well as to assess the progress you’ve made toward achieving your goals.

How Are You Doing?

If your investments have performed differently than you expected, you may be exposed to more risk than you’re comfortable with. Or, your portfolio may hold too many “safe” investments, putting you in danger of falling short of your goals or even keeping pace with inflation. You’ll also want to look at your asset mix to determine if it’s providing the diversification you want.

Your financial professional can help you review your portfolio’s performance and diversification. He or she can suggest investment alternatives, if necessary, and discuss strategies that may add more diversification to your portfolio.

What’s New?

A change in your life could mean that your tolerance for risk has changed. You may find that your portfolio has become a little too aggressive or conservative over the past year. Your advisor can help you evaluate your ability to handle risk and choose investments that fall within your tolerance level.

Talk Taxes

You may also want to review your investments with an eye toward taxes. Could you benefit by selling some losing investments and claiming a tax loss? Should you switch certain investments from a taxable account to a tax-deferred account, or vice versa? If you’re in a high tax bracket, your financial advisor can steer you toward investments that may offer you tax advantages.

Visit Your Estate Plan

An annual meeting with your financial professional offers an opportunity for you to revisit your estate plan to see if you need to make any changes that may be necessary due to births, deaths, marriage, divorce, or changes in the tax law. Your legal advisor can make any necessary changes to your will or other estate documents.

Check Up on Insurance

As your family changes, your insurance needs may change, as well. While your children are young, life insurance is critical, but, as they grow and leave home, your insurance needs may change. Discussing priorities with your financial professional can help you make the most of your resources.

Diversification does not ensure a profit or protect against loss in a declining market.