Why Now Would be a Great Time to Develop an Investment Plan

March 4, 2021

Lifetime financial planning begins by developing an investment plan based upon your specific needs and requirements. This includes implementing a diversified portfolio and provides financial protection in the event of incapacity or death, as incorporated in your estate plan. 

2020 was a roller coaster ride for investors, and not the good kind. Many investors moved from stocks to cash as the pandemic got underway. Such prudent moves for protecting assets carry potential tax consequences, especially for long-term holdings. At the same time, the recovery in stock prices has not been uniformly distributed across all industries. If there are portfolio holdings in the loss category, harvesting those losses to offset realized capital gains may be the sensible course.

If you haven’t reviewed your will and estate plan for several years, this would be a good time to take a look at them. Changing family circumstances (births, deaths, divorces, retirements) are occasions for such evaluations. If major assets mentioned in the will have been sold, such as real estate or business interests, that’s another good reason to make an appointment with an estate planning attorney. 

Serious investing is a full-time job. You need to establish an investment strategy suited to your personal goals and circumstances. Asset allocation planning should be employed to optimize your portfolio, reducing investment risk through a process of disciplined diversification. 

One of the great strengths of financial planning is the ability to tailor the plan to respond flexibly to current and future financial needs. If we have learned anything from this past year, it is the need to plan for all worst possible case scenarios in an ever changing economic and social environment. Consult your tax, investment and legal advisors before making final decisions as it relates to your specific financial, tax and estate planning strategies. 

ABOUT THE AUTHOR

Brandon Kaletkowski is Vice President and Trust Advisor for OceanFirst Bank, with local corporate offices located in Linwood and Mount Laurel, NJ. He is a seasoned advisor with over 15 years of experience working in private banking, wealth management, trust and estate administration.

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