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9 Things to do With Your Investment Portfolio Before 2018

December 18, 2017 by Eric C. Jansen, ChFC®

You know that feeling when you realize you missed a deadline by just a few days? Being just a little bit off can throw your entire plan out of whack, like when you intend to start a new exercise routine on Monday — then Monday comes around, you get busy and can’t make it to the gym, and end up feeling like you missed your shot at a fresh start.

Don’t let that happen to you this New Year, especially when it comes to your money. We may be looking at the last two weeks of the year, but there’s still plenty of opportunity to make money moves now that will help set you up for success when you turn the page to a new calendar.

Here’s what you may want to consider doing with your investment portfolio before 2018.

Rebalance Your Portfolio

Market volatility can really shake up your asset allocation. Thanks to the strong bull market we’ve been enjoying, that means you’re likely over-invested in equities right now — and you may not want to be!

Start 2018 with a portfolio that accurately reflects your tolerance for risk, your time horizon, and your goals by rebalancing before the end of the year.

Think carefully before selling assets with gains, as it could trigger some unpleasant, last-minute tax consequences for you. If you’re not sure how to appropriately rebalance, don’t tinker around in your portfolio on your own.

Touch base with your financial planner, who can help guide you to set up a strong portfolio for 2018.

Get Last-Minute Tax Breaks

Speaking of tax consequences, make sure you stack the deck in your favor! One easy way to do this within your investments is to make some last-minute contributions to tax-deferred accounts.

If you haven’t maxed out your 401(k), contribute money there first, especially if it provides you with an employer match. Then, start looking at your traditional IRA, SEP IRA, or SIMPLE IRA if you have access to any of these.

Or, fund your health savings account (HSA). These offer a triple-tax advantage:

  • Money going into the HSA is tax-deferred.
  • Earnings that grow within the account are not taxed.
  • Withdrawals are tax-free as long as you spend them on qualified medical expenses.

…and Harvest Those Tax Losses

Don’t forget to strategically sell off your assets that lost value over the last year. “Strategically” is the key word here, since doing so willy-nilly can offset any potential advantage you gain from tax-loss harvesting.

Identify New Opportunities for 2018

Because of a strong bull market, stocks are pretty pricey right now. Buying into the most popular stocks right now might lead you to buying high — which is not want you want to do for investment success.

When the market dips, it provides a good opportunity to buy carefully-selected stocks that match up with your needs, goals, and overall investment strategy.

But you shouldn’t wait to buy just because you want to enjoy a nice sale on assets. (That’s timing the market, and it’s tricky!) You can, however, be strategic about where you place your money while the cost of US equities is so high.

Consider international stocks and bonds, which are much cheaper to buy than stocks here at home. Some investors shy away from this, but remember: the US only represents about half the total global market. Avoiding international assets leaves you with a portfolio that’s not truly diversified, and could expose you to greater risks than you need to take.

Automate What You Can

If you haven’t yet set up automated contributions to your investment accounts, now is the time to do so. Automating benefits you in several ways:

  • It eliminates the room for human error in the form of excuses. No more, “Oh, I forgot!” It’s already done.
  • It creates consistency. Even if something unexpected comes up during the month and leaves you in a place where you can’t invest as much as you wanted, you know you at least saved a little bit through your automatic contribution.
  • It makes things simpler, because it’s one less thing for you to worry about.

That doesn’t mean you won’t make manual contributions to your assets throughout the year. But this provides a solid baseline to ensure you’re consistently taking action every month to grow your wealth.

Use Funds Before You Lose Them

If you have a flexible spending account, you only have a few more days to use the money within the FSA before you lose it.

Unlike HSAs, FSA funds don’t roll over from year to year. Whatever is left in the account goes back to your employer.

Your FSA might have a grace period, so be sure to determine if that’s the case for you and if so, what the date on that period is (for many FSAs, it’s March 15th).

Even with a grace period, act now to book important doctor appointments throughout January and February so you don’t miss out come March.

Don’t Forget About Your Beneficiaries

This is a good time to pause and reflect on the ending year before you gear up to the new one. As you think about everything that happened in 2017, don’t forget to check your beneficiaries on your accounts.

Changes in lifestyle, relationships, families, and more can mean the beneficiaries who were listed on your investment accounts are no longer the appropriate people. Do a quick check and make tweaks to your account as necessary.

Keep Paying Attention to Taxes

Sensing a theme here yet? Some of the most important year-end moves you can make with your investments revolve around taxes and tax deadlines — and what the actual tax laws are.

As of December 15, Congress still hasn’t passed what promises to be one of the biggest overalls to the tax system in decades — but they’ll decide on whether to do so or not before the end of the year.

Keep an ear out for updates, but don’t just react.

Ask your CPA and your financial planner to help you plan ahead through these changes so you can proactively make decisions about what’s best for your complete financial situation.

Request for a Raise in Your Retirement Account Contributions

Talk to HR or your manager about the forms you need to fill out to request an increase in the amount you contribute to your retirement accounts in 2018.

Even if you just bump up those contributions by 1 or 2 percent, it makes a difference — and helps you avoid succumbing to lifestyle inflation.

Taking this action now will set you up for a higher savings rate in the new year, which helps keep you on the path to financial success.

You have until the clock strikes midnight on December 31. Ready? Get started!


Eric C. Jansen, ChFC is the founder, president and chief investment officer of Westborough Massachusetts-based Finivi, which provides fee-based retirement income planning and investment management services for successful individuals and families nationwide. Do you need help planning for retirement? You can click here to request a complimentary consultation with a financial planner.

PLEASE NOTE: The information being provided is strictly as a courtesy. When you link to any of these web-sites provided here, you are leaving this site. Our company makes no representation as to the completeness or accuracy of information provided at these sites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, sites, information and programs made available through this site.

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Eric C. Jansen, ChFC

Fun Facts About Me

When he is not researching the next great stock to add to client portfolios, you can find him travelling frequently with his family to Jackson Hole Wyoming.

  • Hometown: Chicago, IL
  • Birth Month & Year: November, 1964
  • Favorite Hobby: Goldmining in Nome, AK
  • Favorite Food: Steak at Charley’s Steakhouse in Orlando FL
  • Can't be interrupted when: Watching the Discovery Channel
  • Hidden Talent: Finish Carpenter
  • Something on bucket list: Obtain Helicopter Pilot License
  • Family Pet: Goldfish

Steven C. Johnson, ChFC

Fun Facts About Me

Steve would tell you that one of the best parts of the day is spent talking to clients and relationships that result from it. When away from the office, he loves to travel the back roads of New England enjoying all the great sites that can be found off the beaten path.

  • Hometown: Townsend, MA
  • Birth Month & Year: December, 1967
  • Favorite Hobby: Playing Hockey
  • Favorite Food: Chicken Caesar Salad
  • Can't be interrupted when: Watching the Bruins
  • Hidden Talent: Cooking – Makes a great Thanksgiving turkey
  • Something on bucket list: Travel to Italy and Greece
  • Family Pet: Max – our Pomeranian

Frederick M. Lane, ChFC, CASL

Fun Facts About Me

When not managing client portfolios, Fred can be found relaxing with family and friends.

  • Hometown: Nutley, NJ
  • Birth Month & Year: July, 1954
  • Favorite Hobby: Dog Walking
  • Favorite Food: Italian
  • Can't be interrupted when: Listening to Pink Floyd
  • Hidden Talent: Landscaping
  • Something on bucket list: Space Flight - Tourism
  • Family Pet: None

Catherine M. Gareri

Fun Facts About Me

When not caring for her clients Cathy enjoys relaxing in her yard at home.

  • Hometown: Bellingham, MA
  • Birth Month & Year: July, 1957
  • Favorite Hobby: Cooking and Entertaining
  • Favorite Food: Steak at the Capital Grille
  • Can't be interrupted when: It's family time
  • Hidden Talent: Dog Whisperer
  • Something on bucket list: Spending a couple months on the Almalfi Coast
  • Family Pet: In Between Mastiffs now so a little blue fish “Willy”

Katie E. Moore, CLTC

Fun Facts About Me

When Katie is not busy taking care of her clients, she spends her time being a mom to her two little ones, Owen and Isla.

  • Hometown: Modesto, CA
  • Birth Month & Year: September, 1982
  • Favorite Hobby: Swimming
  • Favorite Food: Mexican Food
  • Can't be interrupted when: I'm cooking
  • Hidden Talent: Climbed Yosemite's Half Dome, twice - no fear :)
  • Something on bucket list: See the Northern Lights and Potty Train my 2 year old
  • Family Pet: Caddy and Sierra – our two cats

Hesper Duval

Fun Facts About Me

Loves spending time with 2 daughters and enjoys participating in 5k obstacle races throughout the year.

  • Hometown: Charlton, MA
  • Birth Month & Year: October, 1981
  • Favorite Hobby: Running
  • Favorite Food: Cheesecake
  • Can't be interrupted when: Reading a good book
  • Hidden Talent: Interior Design and furniture restoration
  • Something on bucket list: To travel cross-country in an RV
  • Family Pet: Charlie and Nora, both black labs from the same litter

Donna Fournier

Fun Facts About Me

When not cheering for the Patriots, Donna spends her free time travelling throughout the United States looking for new haunted places to explore. She loves to wear her cowboy hat and boots when travelling out west.

  • Hometown: Swansea, MA
  • Birth Month & Year: February, 1961
  • Favorite Hobby: Exploring haunted locations
  • Favorite Food: Pizza
  • Can't be interrupted when: Eating my pizza
  • Hidden Talent: Rollerblading
  • Something on bucket list: Travel to Australia
  • Family Pet:  Had a pet skunk

Danielle Drew

When Danielle does not have her head in a book studying to expanding her financial planning knowledge, she enjoys anything active and outdoors, including visits to the beach and hiking.  

  • Hometown: Dennis, MA
  • Birth Month & Year: November, 1985
  • Favorite Hobby: Working out, concerts, and exploring wineries
  • Favorite Food: Lobster pot pie, cheeseburgers, BBQ, the list goes on...
  • Can't be interrupted when: Working out 
  • Hidden Talent: Country line dancing
  • Something on bucket list: To hike the 48, 4000 footers of New Hampshire
  • Family Pet: none, hopefully a big dog someday

Jay Willwerth, ChFC

Fun Facts About Me

Jay’s days are spent helping clients achieve their financial goals, followed by nights and weekends typically watching his daughters play competitive volleyball.

  • Hometown: Melrose, MA
  • Birth Month & Year: September, 1959
  • Favorite Hobby: Golf
  • Favorite Food: Anything at a Patriot’s Tailgate
  • Can't be interrupted when: Watching the Patriot’s Game
  • Hidden Talent: Competitive Volleyball Watcher (Mostly his 2 daughters)
  • Something on bucket list: Play a round of Golf at Pebble Beach
  • Family Pet: Bella, our Shih-poo
 

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