Money Fix: Before you party, review your portfolio
There are three simple things to do to assure financial security in the new year before you put on the holiday party mask to party it in. Credit: iStock
As 2014 winds down there's plenty to do, and it has nothing to do with shopping and partying and everything to do with your portfolio. Look back before moving forward.
REVIEW YOUR PORTFOLIO. If transactions have produced a net loss, consider sales that would produce profits that could be effectively tax-free. If you show a net gain, consider sales to produce a loss to offset it, says Ira Temchin, an adviser with PNC Investments in Manhattan.
REBALANCE. If your portfolio was designed to be 60/40 stocks/bonds but shifted with market fluctuations, reset it. "Many people forget that the allocation decisions were based on a plan," says Patrick Morris, CEO of Hagin Investment Management in Manhattan.
You don't want your portfolio taking on too much risk. Over time, rebalancing can help you buy low and sell high, says Benjamin Sullivan, a certified financial planner with Palisades Hudson Financial Group in Scarsdale. Diversify with international, real estate and natural resources equities.
Adelphi University business professor Michael Driscoll says, "The entire world expects interest rates to rise next year, but that doesn't spell the end of the period of phenomenal appreciation in equity markets."
RE=EVALUATE GOALS. "What will change? Say you have a child going to college next year . . . you'll want more cash in your portfolio," says Kate Warne, an investment strategist with Edward Jones in St. Louis. And think about what matters most. Craig Ferrantino, of Craig James Financial Services in Melville, asks, "Do you want to save more, reduce taxes? You may need to make adjustments today to help reach next year's goals."
Sarra Sounds Off, Ep. 30: Baseball, All-Long Island and Plays of the Week! On the latest episode of "Sarra Sounds Off," Gregg stops by Kings Park to check out their pitching staff and Jared Valluzzi has the plays of the week.
Sarra Sounds Off, Ep. 30: Baseball, All-Long Island and Plays of the Week! On the latest episode of "Sarra Sounds Off," Gregg stops by Kings Park to check out their pitching staff and Jared Valluzzi has the plays of the week.
