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Funds 509: Refining Your Portfolio

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1.
If you want to work with a financial advisor, what's the first thing you should do?
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Decide what you're looking for--a comprehensive plan or help with a specific issue. The first step is deciding what you want. Are you looking for someone to handle part of your financial life or are you seeking a financial advisor who can take care of it all? Talk to advisors and gather references after you know what you need.
2.
After a major life event, you should _______.
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Re-evaluate your investment goals and risk tolerance. Not every life event has to trigger changes for every investor's portfolio. But we should all re-evaluate our financial plans as we pass through a life stage.
3.
To determine how profitable a company is, examine its _______.
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Return on assets. Return on assets, or ROA, is a key measure of how well a company uses investors' money.
4.
What is included in an ADV form?
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The advisor's resume. The ADV form includes advisors' educational backgrounds and professional designations. It also discusses how the advisor is compensated, and whether he or she has ties to particular insurance or mutual fund companies.
5.
What should we do when we go through a new life stage?
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Re-evaluate our financial plans. Our financial plans may or may not need to change. But one thing we must do is re-evaluate those plans--otherwise, we won't know whether they need to change at all.