It’s time for spring cleaning. But why stop at your house? This year, consider applying some spring-cleaning techniques to your investment portfolio.
For starters, get rid of “clutter.” If you own investments that are duplicates, have chronically underperformed or no longer meet your needs, consider clearing them out of your portfolio and using the proceeds to explore other opportunities.
And, just as you may place similar items together in your home, you may want to consolidate your various investment accounts with one provider. You’ll cut down on paperwork, reduce fees and, most importantly, unite your investment dollars so that it’s easier for you to see what you have and then follow a single, coherent investment strategy.
Performing some spring cleaning on your investment portfolio, may help improve your financial outlook for all the seasons yet to come.
Become Familiar with These Five Key Areas
As an investor, your objectives typically will fall into five key areas. Let’s take a look at them:
First: Preparing for retirement Save as much as possible for your retirement. Take full advantage of your 401(k) and your IRA.
Second: Planning for the unexpected Build a six-to 12-month emergency fund to pay for unexpected costs, such as a new furnace or a major car repair. And make sure you have sufficient life insurance.
Third: Educating your children Consider a college-savings vehicle, such as a 529 plan.
Fourth: Living in retirement You’ll need to create a withdrawal strategy so that you don’t outlive your income.
Fifth: Transferring your wealth To leave the type of legacy you want, you’ll need to create an estate plan with the help of your financial and legal advisors.
So, there you have them: five key financial areas on which to focus as you travel through life.
Contact Wendell at Edward Jones www.edwardjones.com.