Questions to Ask Your Financial Advisor for 2012
1. Following the challenging year of 2011, what is my true financial condition right now?
Re-examine your investment goals, risk tolerance and financial picture. Have your objectives or circumstances changed? For instance, did you move money from your stock mutual funds to your bond and money market investments? Will that more conservative mix still allow you to meet your long-term goals?
2. Do I need to adjust my investment mix?
Have you lost your job, changed jobs, decided to take a buyout or early retirement? Did you get married or divorced, have a child or become a grandparent? Are your children getting nearer to needing money for college expenses? Are you now supporting a parent or parents? It might be a good time to review your portfolio if you answered yes to any of these questions.
3. How much do I need to retire?
Determine how much you will need for retirement. If the amount is more than you have today, calculate how long you will have to work to build a portfolio that will establish a comfortable income stream.
4. I hear discussions about the possibility of higher taxes in 2012; how should I react to this.
Regardless of possible changes in taxes, make sure you take full advantage of tax-deferred savings opportunities such as IRAs, 401(k)s, 403(b)s and 529 plans. Also, ask your advisor if municipal bond funds (which pay tax-exempt income) would fit your situation?
If you would like more information or answers to your questions, please call us at 319-364-3041 or 319-339-4884.