Markets rise and fall. Interest rates shift. The economy changes. While many parts of investing are out of our hands, there are five important factors you can control that can help make a meaningful difference in your financial journey.
1. Risk allocation
The right level of risk can help you stay invested through ups and downs. When your portfolio is aligned with your tolerance for risk, you’re better prepared for both good times and challenging markets.
2. Product mix and utilization
Different tools serve different purposes—stocks, bonds, mutual funds, annuities, or certificates. Selecting the right combination for your needs can help keep your financial plan balanced and flexible.
3. Planning for cash needsIf you’ll need money in the near future—whether it’s for tuition, a home, or retirement income—it’s important to stage cash so it’s available at
the right time without disrupting long-term investments.
4. Managing expenses Every portfolio has costs. Some are internal, such as fund fees. Others are external, like advisory costs. Understanding these expenses allows you to make informed choices about how your money is working for you.
5. Tax planning
Taxes can take a significant bite out of returns. Factoring tax strategy into your overall financial approach can help you make the most of current laws and prepare for the future.
By focusing on these five controllable factors, you can build a stronger foundation for your financial plan and one that adapts with you through changing markets and life events.
If your current advisor is not reviewing these five topics with you, please reach out to me so you can learn more.
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