It’s time for a financial makeover

By Bahiyah Shabazz, MBA

English: Wall Street sign on Wall Street

English: Wall Street sign on Wall Street (Photo credit: Wikipedia)

In the past, I’ve watched shows where contestants weren’t happy with their appearance. A fashion guru would coach the person on which clothes to wear to compliment the person’s body type, how to properly apply makeup and which hairstyle would make her look more youthful.  When it comes to your finances, there isn’t much difference.

Since the economy is spiraling down quicker than a coin on a ramp, it’s time to make some changes to your portfolio. Investors can’t do anything about the bear market, but they can take advantage of the down stocks. Due to the government making an announcement about the gain of {only} 69,000 jobs in May compared to a forecast of 150,000 jobs, Wall Street {and others} noticed a 2 percent drop in the market on Friday.

Investors don’t want to drown

Many investors are looking toward theUnited Statesand central bankers inEuropeto make a decision and implement changes to save the economy.

“There’s a belief that with their backs against the wall, European leaders will at least come up with a short-term resolution to help the Spanish banking system,” said Peter Boockvar, equity strategist at Miller Tabak.

U.S. stocks tumbled more than 2% Friday in the worst trading day of the year. The Dow erased all its gains for 2012, and the S&P 500 and Nasdaq moved into correction territory — down more than 10% from the year’s highs.

Bond prices retreated slightly in Monday trading, allowing the yield on the 10-year note to rise just above 1.5%.

The word is…safety

Now is a great time to contact your financial adviser and look over your portfolio.

Many investors believe that it is safer to stash money in assets that offer hardly any returns than to risk losing the assets themselves.

Although no one is suggesting closing out your retirement accounts, it is strongly suggested that you are weighed more in bonds and liquidity until the time occurs for you to purchase more stocks.

Should you completely avoid stocks?

The answer is simple: No. Avoidance doesn’t solve problems it only prolongs the expected.  No one has the magic solution to investing. The best calculation would be asset allocation.

You can remain in the market while investing a small amount of your portfolio in entities. Make sure you are diverse across the plan…discuss your options with a Licensed Financial Advisor.

When it comes to a financial makeover you are simply revisiting your goals, performance, diversification and contribution to make sure you remain on track toward financial stability.

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“Love yourself enough to support yourself.” BL Shabazz

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