The end of the year is a great time to get your financial house in order. As the market bounces along throughout the year, your portfolio bounces right along with it. Every once in a while, you need to give it a checkup. And it’s not just rebalancing your investment portfolio (though I cover that in step 4) – you need to make sure your entire financial picture is in good working order.
Review Your Risk Tolerance and Asset Allocation
Your portfolio should be built around your risk tolerance. You want to make sure your portfolio doesn’t take so much risk that you can’t weather the inevitable ups and downs of the markets.