YOU’VE IGNORED YOUR PORTFOLIO FOR LONG ENOUGH!

By Deborah Laemmerhirt | August 24, 2012

You’ve ignored your portfolio for long enough. It’s time to get all your information together, thoroughly analyze it, and clean up your investments before year-end. Some points to consider during this review include:

  • Take another look at your asset allocation plan.  Do this before you review your actual investments, so you aren’t influenced by your current allocation. Don’t just assume your original allocation is still appropriate. You may now realize that your risk tolerance is lower than you originally thought, so some changes to your allocation may be needed. Or you may realize you need to increase your allocation to one investment category or another to help ensure you meet your financial goals.
  • Find your most recent statements.  List each investment and its current value.  Total your investments by category ? cash, bonds, and stocks. Then compare those percentages to your asset allocation plan. If you haven’t done this review in a while, you’re likely to find your current allocation is off from your desired allocation.
  • Decide how to get your allocation back in line.  Look for ways to accomplish this as quickly as possible. That will probably mean you’ll need to sell some investments so you’ll have funds to purchase other investments.
  • Get rid of small accounts.  It’s not unusual to find you have several small accounts. Perhaps you have a bank savings account with several hundred dollars in it that you don’t use anymore. Or you may have a small investment account that you received as a gift. The accounts are so small you haven’t taken the time to cash them out. But you still have to look at the statements every month and make sure any income is included on your tax return. Take all those small accounts, cash them out, and consolidate the funds in one account.

Look for ways to simplify your investments.  Do you have a variety of individual retirement accounts (IRAs) that can be consolidated in one IRA? Do you own similar stocks or other investments that aren’t adding much in the way of diversification to your portfolio? While you want to be properly diversified, minimize the number of accounts and investments you own so your investments are easier to monitor

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About Deborah Laemmerhirt

Let me assist you in finding everything you need to know about buying or selling a home! As the preeminent real estate professional in my community, I am dedicated to providing the finest service available while breaking new ground. Because the real estate industry is becoming more sophisticated and challenging every day, you need a professional that understands the industry and is positioned to stay ahead of the game. I go the extra mile to help you achieve your goals. That’s why I constantly research the home, market and estate values so your home is priced effectively from day one. I also make sure the public knows your home is for sale by using innovative marketing techniques to attract potential buyers. As an Internet-savvy real estate representative in Connecticut, I’ve had the opportunity to help many home buyers find their ideal homes and many sellers obtain top dollar for their homes. Buying or selling a home is one of the largest financial transactions that most people ever undertake, so I will help you through every step of the process. My goal is to make your home selling or buying experience as easy and enjoyable as possible. My services include: Explaining the home selling and buying process thoroughly Diligently selecting homes that meets your criteria Pricing your home correctly and implementing a unique yet proven marketing plan Negotiating on your behalf Tracking the closing process to ensure a smooth transaction I welcome the opportunity to address any questions you might have about buying, selling or current market conditions. Please call or e-mail me any time, and I will be happy to discuss your next steps in the buying or selling process. I specialize in both Residential and Commercial Properties. I also head a Real Estate Group to provide you with expert service and support. Areas of Expertise Making transitions in your life is challenging. You may be moving from out of town, a different state, internationally or just next door! Regardless of the distance I am prepared to respond to your unique needs.If you are a BUYER looking to downsize, up-size, want a new construction, desire a condominium, to invest, even if this is your first home, I will design a unique plan to fulfill your needs in a reasonable time frame, with the best negotiated price and the least amount of inconvenience.For my Home Sellers, I have an innovative marketing plan that will leave nothing to chance. Just call, and I would be happy to share the DIFFERENT and SUCCESSFUL TOOLS I utilize on each of my listings. I have lived in Connecticut for over 35 years. I practice Real Estate in Fairfield County, New Haven County and Litchfield County. This includes, but is not limited to Bethel, Bridgewater, Brookfield, Danbury, Harwinton, Kent, Litchfield, New Fairfield, New Milford, Newtown, Oxford, Ridgefield, Redding, Roxbury, Sherman, Southbury, Warren, Washington, Westport and Wilton.