Even the best-designed investment plan may need changes from time to time. The need for change may be obvious if you experience a significant personal change such as marriage or divorce, or a lifestyle change such as retirement. At other times, the signs that your strategy may need change will be less obvious, such as a gradual increase in your net worth or children finishing their college educations. Reevaluate your investment strategy when:
- Your financial objectives and/or time frame have changed. Once you purchase a home, you may start saving for retirement, a goal with a much longer time frame than saving for a down payment. The birth of a child may make saving for a college education a top priority.
- You are nearing your original goal. As your child approaches college age or you near retirement age, you may need to change your investment strategy. You may find you are less risk tolerant since you want to ensure funds are available when needed.
- Your financial situation has changed. That change may be immediate or gradual. You may receive significant bonuses or raises, making more funds available for investing. You may steadily pay down debt, freeing money for investing. As your financial situation improves, your feelings about how to allocate those funds are likely to change.
- Your attitude toward risk has changed. Over time, your attitude toward risk may change as you become more familiar with different investments.
Please call if you'd like to discuss whether a change in your investment strategy may be warranted.