That is truly a loaded question as we have just celebrated the start of spring, which is traditionally a time for rebirth and renewal as the days are getting longer and hopefully warmer.
Or it could refer to having your tax return prepared as they are due in less than a week’s time.
However, the question I am asking is concerning your savings and investments asset allocations. I know thinking about your spring and summer plans is a lot more fun, but you should consider your financial situation from time to time.
The stock market is very close to an all-time high, and as we have all learned, the stock market can fall just as fast, if not faster, than it rose to these lofty heights.
For the past couple of months I have been astounded that the stock market has continued its relentless pursuit of new highs. When I read the news about turmoil in the Eurozone, budget deficits at home and general uncertainty facing the U.S. economy, I have to scratch my head.
It might be that, although we have problems here at home, when compared with the rest of the world we are still a pretty safe place to invest.
In my job as a financial advisor I see all kind of folks. I see people who are not sure of their financial situation and may rarely even look at their monthly financial statements.
At the other end of the spectrum are folks who have records and charts for their weekly investment portfolio going back 20 years.
This column is directed to everyone regardless of their bookkeeping temperament.
I am suggesting that with the stock markets being at all-time highs now might be a good time to reconsider a rebalancing of your portfolio. If you have mutual funds or stocks that have had a good gain, there is nothing wrong in selling a portion of them to lock in some profits.
Some folks hate to sell a winning stock, but when the tide turns, as it invariably does, they hate to sell when it is down as they want to wait for the stock to regain its past higher level.
I frequently find a large discrepancy between what a person says his or her risk tolerance is when compared to his or her actual investments.
People generally say they are conservative but after delving into their investments I find positions that are far too aggressive for their risk tolerance.
This may have served them well during a rising market but it can cause sleepless nights when the market heads south.
Analysts in the press have been saying that we are finally at the end of the “lost decade.” The “lost decade” they are referring to is that many mutual funds from the market declines in 2001 and then in 2008 are now just finally back to where they were prior to the first decline.
My message today is that now might be a good time to review your portfolio and ensure that you are satisfied with where your funds are invested. It is always better to be safe than sorry.
One of the analogies I use is the story of the tortoise and the hare and how slow and steady will usually win the race.
This is especially true when investing, so please be careful with your investment decisions.
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Thu, Jan 16, 2014
Three years to three weeks
Wed, Dec 4, 2013
Double the fun
Fri, Nov 8, 2013
Good luck and happy searching
Thu, Oct 10, 2013
The ACA as a soap opera
Tue, Sep 10, 2013
ACA eligibility verification changes
Thu, Aug 8, 2013
Affordable Care Act updates
Wed, Jul 10, 2013
An update on insurance exchange
Tue, Jun 4, 2013
Looking at long-term care
Wed, May 1, 2013
Is now the time?
Wed, Apr 10, 2013
Wed, Mar 6, 2013
Are we there yet?
Wed, Jan 2, 2013
Wed, Dec 5, 2012
Full steam ahead to 2014
Tue, Nov 13, 2012
Medicare: Tips for Part D savings
Wed, Oct 24, 2012
Medicare Plans for 2013
Mon, Oct 8, 2012
Medicaid expansion, explained
Tue, Oct 2, 2012
The Medicare voucher system
Thu, Sep 13, 2012
New rules for 401K plans
Wed, Aug 1, 2012