Keeping Your Plan In Balance

Investing can be a complex and confusing process. Even success can throw your investment strategy out of kilter. For instance, let's say you want to have 60% of your portfolio invested in various types of stocks. If the market does really well and you are realizing higher than expected returns on your stocks, after a couple of years you may find that you now have 80% of your portfolio invested in stocks, even though you haven't changed a thing.

No matter what type of investor you are, it is important to keep your plan on track. Revisit your asset allocation periodically (every year or two, depending on market conditions) and see whether it needs adjustment. You should also periodically re-examine your risk tolerance and investment profile, especially as you get closer to your goal. You may discover you need to tweak your portfolio's risk exposure over time.

Sitting down regularly and reassessing your goals, time frames and asset allocations allows you to fine-tune your strategy and keep your risk within acceptable levels.

The Professional Advantage

Because investing can be so complex and time consuming, many investors have turned to professional money managers for help. Working with an investment manager who is sensitive to minimizing taxes can enable you to maximize your after-tax total return. A skilled professional can help you identify investments that not only achieve the greatest absolute return over the years, but also subject you to the lowest overall taxes along the way.

A money manager can also show you how to properly allocate investments among your various accounts and work with you to integrate your investment and financial goals.

Material discussed is meant for general illustration and/or informational purposes only and it is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary therefore, the information should be relied upon when coordinated with individual professional advice.