Bringing Order to Your Investment Universe

Part 4: Seizing the Days

 

 

As you transition toward your ideal portfolio, life may send you additional opportunities to seize and obstacles to avoid. Our last installment discussed tax strategies to consider when optimizing your investments and in Part 4 of our series we provide a few examples of events to pay attention to as you implement your plans.

 

Take Advantage of Market Declines: When markets decline, stocks go on sale. If your plan calls for selling some positions and buying others, you may be able to take advantage of market downturns to enjoy lower taxable gains as you sell, and better (lower) prices as you buy.

 

Add New Money to the Mix: Whenever your plan calls for holding more of a particular type of investment, it’s always best accomplished when you can add new money to your portfolio, and invest it accordingly - no taxable strings attached. Have you recently experienced a pay raise, equity compensation event, or inheritance?  Any such “found” money can be ideal for this role.

 

Withdraw Money Mindfully: Likewise, as you withdraw money from your investment accounts, you can be deliberate about selling positions in which you are overweight, to reduce your exposure to them as planned.

 

Shift Money from Taxable to Tax-Sheltered: Each year, you are given fresh opportunities to add new money to your tax-sheltered accounts. You might use these annual opportunities to move assets from your taxable to your tax-sheltered accounts, where trades do not incur taxable gains. This may offer more flexibility for achieving and maintaining your ideal portfolio mix.

 

Give Your Money Away: If you are charitably inclined or planning to gift assets to loved ones, you may be able to move your portfolio closer to your ideal targets through charitable giving and/or gifting. In short, if you’re planning to give some money away anyway, you might as well be deliberate about which investments you tap for it. Additionally, you have the ability to gift investment vehicles to a charity directly either through a Charitable Giving Account or other means and avoid paying capital gains on your investments entirely.

 

Acting on Your Orderly Resolve

Are you ready to bring more order to your investment universe?  Seek out an investment advisor who can walk you through the tactics just described. Your advisor can also provide you with a robust cost/benefit analysis to help you:

 

• Decide how fast or slow you’d like to go.
• Know where you stand as you proceed.
• Resolve second thoughts you may encounter along the way.

 

We have a caveat, though: Seek a wealth advisor who clarifies rather than confuses your planning.

 

Your ideal ally will not only provide you with solid numbers to consider, they should be able to explain them in a way that makes sense to you. The goal is to gain an empowering sense of control over your investments. Proceed with caution if someone is instead trying to dazzle you with daunting data that leaves your head spinning or gives suggests investments that seem to good to be true.

 

Also, be sure to give yourself some grace as you proceed. Change - even change for the better - can be scary. While your head may be telling you it’s time, your heart may be hesitating.

 

Remember, even the most orderly universe contains some chaos, to fuel the work in progress. Money management is no different. The more accurately you aim for perfection, while embracing the essential uncertainties involved, the more effectively you can pursue your ideal financial goals. Here at Mejlholm Wealth Management we specialize in walking our clients through challenging life changes and unexpected paths.  Bringing order to your investments and planning for your unique future is complex.  We are here to give you peace of mind to live the life you envision. 

 

Please let us know if we can assist with your pursuit.