Now that we’ve put winter behind us — at least on the calendar — it’s time to think about sprucing up our homes. And it also might be time to do some financial spring cleaning as well.
Some of the same ideas involved in tidying up your home also can be used to put your financial house in order. Here are a few suggestions:
- Dust off your investment strategy. Just as things around your house need a good cleaning, your investment strategy needs to be “dusted off” occasionally, so you can see if it’s still working to move you toward your financial goals.
- Declutter your portfolio. If a survey of your home found duplicates of things, it might be time to declutter. And the same could be true of your portfolio. If you have several identical, or substantially identical, investments taking up space, you might want to replace these redundancies with investments that can improve your diversification. While diversification can’t guarantee profits or protect against losses in a declining market, it might help reduce the impact of market volatility on your holdings.
- Get organized. Overstuffed closets can make it hard to find what you’re looking for, but a little straightening up will make searches much easier. And when trying to locate financial documents, you’ll also benefit from having everything organized in one central location. Even if most of these documents are online, you can save what you need and keep them in a file on your desktop, laptop or tablet. It’s also a good idea to tell a responsible adult how to access these documents, just in case something happens to you.
- Protect yourself from dangers. In your garage or other storage area, you might find objects that could be dangerous if not stored properly. During your spring cleaning, you’d want to remove those hazards to safeguard your family. But have you addressed the financial risks that could threaten your loved ones? If something were to happen to you, could your family members maintain their lifestyle? Could your children still go to college? To guard against these risks, you might want to discuss protection strategies with a financial professional.
Spring cleaning can pay off — in a cleaner, safer home and in helping to ensure your financial strategy continues to work hard for you.
This article was written by Edward Jones for use by your local Edward Jones financial adviser. Edward Jones, member SIPC.
– Roberto De Jesus and Amanda Yingling are financial advisers for the Edward Jones branch on Cedarcrest Road in Acworth.