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Trends in Fashion & Finance 09.27.2017

"And if a little thing like purging my closet can make a gal feel that confident and powerful – think about how a healthy annual review of her investment portfolio could make her feel!? Unstoppable!"

Asset Allocation: Investing with Style and Savvy

Wisps of fall weather are in the air here in Chicago and I, like so many of you, am planning to set aside the next rainy weekend to purge my closet. It’s an annual ritual for me. I review everything I have and decide if it should stay with me for another year. Some pieces don’t match my new “empty-nester in the city” lifestyle. Other pieces have given me their best years but are starting to look their age and must be retired. And then, there are the favorites…which are always fun to take out of the closet, admire, and look forward to the day when I get to wear them again!

This little tradition of mine always makes me feel so much more organized and in control of my life. It’s a little thing – but knowing what I have and where it is and that everything in my closet is in ready-to-wear condition makes me feel as if I am ready to take on the world.

And if a little thing like purging my closet can make a gal feel that confident and powerful – think about how a healthy annual review of her investment portfolio could make her feel!? Unstoppable!

Asset allocation is the technical term for balance between risk and reward across one’s investment portfolio. It’s what I talk about when I tell women to build their “financial closet” with a balance of different kinds of investments. Just like you would balance your wardrobe with little black dresses, boho chic, couture, and emerging designers so that you have the right thing for every occasion, you need to balance your investment portfolio with the same style and savvy.

I advise my clients to review their assets at least once a year and determine if – just like a closet full of clothes – their investments are serving them and their current lifestyle. It’s human nature to put your investment portfolio aside and consider it, “done and taken care of”. But a portfolio is a living, breathing thing and needs regular attention and tweaking in order to maximize its value.

Lifestyles change. Perhaps you got married and are now planning for two. Maybe you had a parent pass away and need to incorporate inherited investments into your portfolio in a manner that will serve your financial goals. When you first started your investment portfolio, were you pursuing an entirely different career? If so, the investments that you made back then were reflective of your prior income, which may have changed considerably. Also, since the stock market has enjoyed some nice gains this year, your portfolio may be out of balance too.

In summary, I recommend that you add one more financial to-do to your list in these last months of 2017. Please reach out to your financial planner and set a meeting to review your investments, their performance, and your goals. Make sure your mix is just right. Get rid of what isn’t serving you and make adjustments that are in line with your long-term financial goals. Get that portfolio into is best shape for the coming year and enjoy the confidence in knowing that your money is working as hard as it can for you!

Asset allocation does not ensure a profit or protect against a loss.

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