Personal Financial Tip # 13 - Security sales

It's getting to that time of the year that you want to review your investment portfolio (if you haven't done so to date).

Questions you want to ask yourself about your portfolio.

1) Has my personal life situation changed? If so, should my portfolio change as a result.

2) Are the investments I'm in still consistent with life objectives?

3) Do I have adequate diversification with my portfolio?

4) What are the tax implications in rearranging my portfolio?

Please note. The fourth question, while important, is really not part of your investment strategy.

As I always recommend to clients. If you are unhappy with an investment or believe that it's at it's high, you need to sell without regard to the tax implication.

For instance, If I purchase a security for $10,000 and it's now worth $15,000 and I believe it's reached it's high. I'm selling and I'll pay the taxes.

On the flip side, if I purchase the same security for $10,000 and it drops to $8,000 and I do not
like the long term potential of the security. Again, I'm selling without regard to the loss involved.

So now's the time to review your portfolio with an adviser and rearrange it to your personal financial objectives.