It is 2008; do you know what your mutual funds are doing? With the arrival of the New Year, it is a perfect time to clean out your closets and check on your financial portfolios.
After the year ends, mutual fund companies release their year-end distributions reports for tax purposes. This is a perfect opportunity to evaluate your current investments and their performance.
The year 2007 saw a lot of profitable funds and healthy increases for many. Therefore, if you have funds that appear to be consistent losers – it could be time to look elsewhere. At the very least, it should get you calling your financial advisor or fund company managers.
If you haven’t reviewed your investments in a long time, even if they are earning good money – it is still good to take the time to speak with a customer service representative for the company that holds your money. Whether they are retirement or not, review the growth vs. security of all your funds. Seek some advice from their professional opinions.
It is also good to consider the type of investments you hold. Certain market sectors may have had a ton of growth this past year – but the funds may be slowing down. A good example is natural resources, an area with a strong pace that can’t hold for the long term.
Also evaluate the balance. You want to have a good assortment of mutual funds that provide some stability and some risk. Therefore if a market bubble bursts, like the tech market did in 2000, you won’t lose it all.
Freshen up your financial picture with a few phone calls to your key advisors. Spend some time reading the financial section. Ask some smart investors you know. Arm yourself with some good tools and go clean up your financial closets.
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