There is a fundamental process that any person can employ, regardless of the person’s age, or assets.

You must start from the very beginning of the financial planning process. You must start by examining what your goals are. You can’t assume that the assumptions you had even a few years ago are still valid. You really must be brutally honest in your examination and not indulge in wishful thinking.

  1. Examine your financial planning goals.
  2. Examine your risk tolerance.
  3. Examine your financial income needs.
  4. If you are pre-retirement, examine your retirement planning needs.
  5. Examine all costs and fees associated with your assets.

These and other questions pertaining to your individual circumstances should be asked. Once you have a grasp as to your circumstances and frame of mind, you now can examine your holdings.

  1. Divide your assets into three categories.
    1. Those assets that have held up well and are doing what you intended them to do.
    2. Those assets that have declined in value and will most likely never recover.
    3. The most difficult category, those assets that have declined in value but may recover when the economy recovers.
  2. Liquidate those assets that are not performing and are no longer useful based upon your current market assumptions.
  3. With your new risk tolerance, income needs, and other factors that are unique to yourself in mind, deploy your now liquid assets into areas that are working in this market climate.

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*PortfolioRepair® refers specifically to ensuring that your investments are aligned with your goals and objectives. The concept of PortfolioRepair® concept does not refer to return or performance.

*Please check with your financial professional before acting upon the above recommendations.