Of Potholes and Portfolios

 Spring is the time of year when all the potholes created by the freeze/thaw cycles of winter become all too obvious.  You can damage your car, your tires, and your rims if you are not careful.  We all have to slowdown to avoid these cavernous craters on our roadways and we complain to our local officials about fixing them on the roads we travel the most often.
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Your investment portfolio can be like that also.  Stocks fall in value creating imbalances or potholes in our holdings.  Not all stocks rise at the same rate, so you could have some underperformers that you should be adding to or selling. Or maybe you sold something at a profit, but you haven’t reinvested the proceeds. Maybe you sold something that wasn’t working in your portfolio or even worse, maybe you need to sell something in your portfolio that isn’t working. 

Maybe your pothole isn’t an investment at all. Maybe your pothole is a lack of a long-term plan or the need for a consistent strategy.  Your pothole could be that life insurance you have been meaning to buy since your second child was born, or the debt you have let accumulate on a credit card since the holidays. Maybe your pothole is the will or power of attorney you have been meaning to establish for the past four years.
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Whatever the case you need to periodically look at filling in the potholes in your financial life.  The work crews you pass everyday on your way to the office can serve as a reminder that your financial life needs maintenance and care if it is to provide you a smooth and comfortable ride on your journey. Patch your potholes – today is as good a time as any.

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