The days are getting longer and warmer — a sure indication of the arrival of spring. But you might not have realized that some of the same spring-cleaning techniques that can be used on your home can also apply to your investments and your overall financial strategy.
Get rid of “clutter.” As you do your spring cleaning, you may well find some clutter — a bunch of items you no longer need. As an investor, you might look at your portfolio and also find “clutter” in the form of investments that are no longer appropriate for your objectives.
Get organized. You may also be able to organize your investments more effectively. One possibility: Consider consolidating your investment accounts with one provider. By consolidating these investments, you might save money and paperwork
Seal “cracks.” Over time, you may find that, in looking at your overall financial strategy, your “protection” component — primarily in the form of insurance — might have developed some “cracks” or “chips.” Specifically, has your life insurance kept up with changes in your family situation? Events such as marriage, remarriage or the arrival of a new child can all trigger the need to review your life insurance.
Do some “dusting.” If you’ve been investing for a long time, you may need to metaphorically “dust off” your financial strategy to “freshen it up” to reflect changes in your life.
Just as spring cleaning can bring more light into your home, sprucing up your investment picture can help you brighten your financial outlook. And these improvements can help you in all the seasons of your life.
This article was written by Edward Jones for use by Evans of Richmond Hill.