Rebalancing Your Assets

If you are regularly investing, then you’re doing good things for your finances and for yourself in general! So many people in today’s world don’t take the time to invest, which means that they don’t allow their money to grow and work for them in all the ways that it could.

However, just investing your money and then stepping back and not being involved is not the answer! After you have made investments, you’ll want to check up on them regularly to see how they’re performing. You may want to get rid of some investments, take on some new ones, and also make adjustments and re-balance investments in order to minimize risks.  

Regularly checking in on investments and making changes as needed is all part of being an investor, but knowing what changes to make and when can be a bit tricky, especially if it’s all new to you. That’s why we’ve provided some simple tips for re-balancing your assets smartly.

Tip #1: Aim for an Asset Allocation You Feel Good About

Your asset allocations will often shift and change as investments grow and change themselves. Thus, sometimes, you end up with an asset allocation you’re not entirely comfortable with. This could also happen through poor planning. Whatever the reason, if you end up with an asset allocation that’s too risky for you or otherwise makes you unhappy, some re-balancing is definitely in order.

When you re-balance for this reason, do so with the goal of developing an asset allocation you feel comfortable with and that doesn’t involve too much risk. If you’re unsure how to drive your risk down, then you may want to speak with an investment adviser for assistance.

Tip #2: Think About Your Taxes

It’s important for you to remember that many of the decisions you’ll make during re-balancing will have some kind of an effect on your taxes. For example, when you sell taxable assets that have increased in value, you’ll probably have to pay a capital gains tax.

You can minimize such taxes by selling off lower performing securities or choosing to hang on to certain assets for longer. A good asset management adviser can also supply you with more strategies for getting your assets back in balance without driving up your tax bill.

Tip #3: Time it Right

Finally, it’s important to understand that it is extremely possible to re-balance your assets TOO much. If you panic and re-balance every time there is some kind of tax change or stock market surprise, you’re going to end up paying way too much in fines and fees.

Instead, get set up on a regular re-balancing schedule. How often you should re-balance will depend on your needs and goals, but having a regular routine will keep you from making panicked decisions and from paying too much in fees.

As you can see, re-balancing your assets is complex, but with the right help and adherence to these tips, it can be done!

The Worst Investment Mistakes

Anytime you invest, you’re taking a risk. Obviously, the hope is that this risk will work out in your favor and that you’ll end up making money. And, while some investments are riskier than others, it is important to keep in mind that you do have some control over the investment process. By making smart choices and taking calculated risks where the odds are in your favor, you can come out on top most of the time. Plus, if you are careful to avoid the most common (and worst!) investment mistakes, your chances of success are even better.   

Mistake #1: Leaping Before You Look

As mentioned above, smart investing is about taking calculated risks, risks where you’ve done your research and know that you have a good chance of everything working out in your favor. When you neglect to do that research and/or allow yourself to get swept in fast-talk or big promises, there’s a good chance you’re going to be disappointed with how your investment turns out.

In addition to learning everything you can about a particular investment venture before signing anything or putting any money into it, follow these basic tips:

l  For stocks, check the company size, revenues, profits, and projections

l  For mutual funds, look at performance, costs, and investment types

l  For financial planners, look for non-commission based, experienced, certified professionals

Mistake #2: Neglecting to Think About Taxes

Some investments aren’t really worth it, even if you make a profit, thanks to the huge amount of taxes you’ll have to pay. Thus, it’s always important to think about the long-term tax implications of your investment choices. Instead of just seeing a potential for profit and going for it, really study to see if that profit is going to be worth the taxes you’ll have to pay, not to mention all the effort you’ll have to expend to get it. Making choices with these things in mind will make your choices much better.

Mistake #3: Not Working with a Professional

Finally, don’t make the mistake of making all of your investment decisions on your own. While you can accomplish a lot and make some good decisions through your own research and hard work, it’s a whole lot easier to trust in those decisions and to see potential problems you might not have noticed when you have a pair of professional eyes helping you out. Find an affordable investment advisor who will help you to make good choices. Doing that and following these tips should ensure successful investments the majority of the time.  #InvestmentProcess

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Building Your Credit from Scratch

2005 US cent, obverse side] (Photo credit: Wikipedia)

Sometimes, it can seem like the whole world has money and is simply obsessed with asset management, meaning what to do with the money they have. Of course, not everyone is at that stage in life. If you’re at a point where you don’t have much or any credit to your name, just getting established financially can feel impossible, but it’s really not.

To get started, check out your credit report. Do this even if you think you have no credit to speak of. Oftentimes, credit reports can contain errors, particularly if you have a parent or other family member with the same or a similar name. Clear up any discrepancies on your credit report and just be aware of where you stand. If you have no credit at all, don’t panic. That just means you have a blank slate to work with, and there’s nothing wrong with that.

If you find yourself in a “no credit” situation, try opening a bank account, preferably a checking and a savings account. Having these accounts in good standing, even if you don’t have a lot to put into them, can help you to start building your credit.

Also, take advantage of any bills you accumulate. Though they may seem like a pain, paying them on time is a step in the right direction when it comes to credit. Credit does have to be built slowly, but if you’re patient and smart about the process, you can make a good name for yourself in the credit world.

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Are Assets Worth It?

It used to be that owning assets was considered one of the smartest and most sound things you could do financially speaking. Nowadays, a lot of people are questioning whether or not assets are really a worthy investment.  

To begin with, stock prices and bond prices have gone up over the last few years, and a lot of people just don’t want to put big money into something that might pay off or might not. The problem isn’t just the high prices of these initial investments either. Another problem is that, due to recent economic hardships, the yields from these assets have been rather low.

Many financial experts are also speculating that the vast majority of assets are mispriced and that market crashes are on the horizon. Do all of these things mean you should consider giving up on assets altogether? Absolutely not!

In fact, what you should do is find a financial professional to assist you. Asset management isn’t just about managing the assets you already have. No, a good asset management professional will actually help you to choose the assets that work for your budget upfront and that are likely to benefit you in the long run. Remember, there are good assets out there; you probably just need a little help finding them. To get the process started, contact Platinum Financial Associates, Inc. Of Naperville.

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Do You have Unclaimed Property or Funds

You probably think that if you had some financial assets lying around, you’d snatch them up straightaway. And, while that very well may be true, you may just be missing out on some assets that you don’t know about.

Did you know, for example, that when the average person files his or her taxes, that person will usually accidentally leave out about $460 that could have been claimed? That’s a crazy thing to think about, but people often don’t realize what they’re entitled to and end up missing out. The best way to keep that from happening to you is to let a professional assetmanagement firm handle your taxes and your general financial needs for you.  

Not only do people lose money on unclaimed taxes, but they also lose money on unclaimed property. Whether this loss happens because they don’t know they have the property or they don’t realize that it’s claimable, it’s still a major loss. Again, a professional asset management team can let you know exactly what your assets are and how to claim them for best results.

Don’t continue missing out on money that’s rightfully yours! Call on the help of Platinum Financial Associates of Naperville, and you’ll get every penny you’re owed, guaranteed!

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Understanding Your Assets

Did you know that almost everyone (including you!) has some kind of assets? If you’re not sure what those assets are or even if you have any, however, you could be missing out on potential financial benefits. Obviously, the first step to getting the benefits you deserve is to figure out what your assets are. Most assets can be grouped into one of two categories: physical assets and financial assets.

Physical assets are objects or things of value that you actually possess, such as a very expensive piece of

jewelry. If you can hold it in your hand and it has value, it’s a physical asset. Financial assets, on the other hand, are money in any form. Whether it’s a savings account or a retirement fund, if it involves money, it’s likely a financial asset.

Knowing what your assets are and their type, however, won’t do you any good if you don’t know what to do with those assets or how to make them work for you. That’s where the help of an asset management firm can really come in handy. An asset management firm, such as Platinum Financial Associates of Naperville, can show you exactly how to determine your assets and how to put them to work for you!

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