Spring is here — which means it’s once again time to wash the windows, organize your cabinets and steam your carpets. This year, in addition to tidying up around your house, why not also consider some financial spring cleaning?
Here are some suggestions to consider: “De-clutter” your investment portfolio. When you embark on your home cleaning mission, you might notice that you have redundancies — three blenders, two vacuum cleaners, and so on. Similarly, you might find duplications in your investment portfolio, perhaps in the form of multiple, near-identical stocks or mutual funds. If so, then it might be worthwhile to consider selling some of these investments and using the proceeds to boost your portfolio in other areas in which you may be lacking.
Cut back on “overgrown” investments. Now that winter is over and you’re venturing outside more, you may notice some overgrown shrubbery or some tree branches that need pruning. And while it may sound counterintuitive, you might also have some investments that have grown too big for your needs. For example, you might own some growth-oriented investments whose value has increased so much that they now take up a larger percentage of your portfolio — and carry a higher degree of risk — than you originally intended. If that’s the case, you might be better off by selling some of these investments and purchasing others to help bring your investment mix back to its desired alignment.
