Cleaning House

This fall our family took a long-term guest into our home. As one of the by-products, my wife and I spent a lot of time cleaning house.

What we found was illuminating: lots of precious treasures turned out to be nothing but junk. Even the local thrift store wouldn’t take it. We thought some of it had value, but when you looked closely, it was really worse than useless.

In the same way, investors ought to examine their long-term financial plans regularly. Are your earnings and expenses still in line? Can you afford to set aside a little more? Have things changed—like a kid being born, or someone finishing college?

Major life changes require adjustments to your financial plans. Whether it’s saving more or changing the mix of stocks and bonds, your life-circumstances will determine your ideal portfolio. That’s strategy. Getting to that allocation from where you are now – that’s tactics. And when an old approach no longer fits, you should throw it out like an old pair of shoes.

There’s a saying that if you don’t know where you’re going, any road will take you there. By updating your plans you can assure yourself of a smoother journey, and a cleaner attic.

Douglas R. Tengdin, CFA
Chief Investment Officer
Hit reply if you have any questions—I read them all!

Follow me on Twitter @GlobalMarketUpd

direct: 603-252-6509
reception: 603-224-1350 • •
By | 2014-09-05T14:33:26+00:00 December 8th, 2009|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

Leave A Comment