Financial Planner

CHECKLIST: PORTFOLIO CHECKUP

Things to do this weekend with your money:

It’s time for your quarterly portfolio checkup. Several Web sites have improved their services to make your task easier.

TODAY: Diversification has gotten a bad rap in some circles, but most financial planners insist that spreading your investments among different asset classes is the best way to reduce risk without sacrificing long-term gains. Some brokerages have made checking your asset allocation almost painless; Schwab customers, for example, can use Schwab Portfolio Checkup at https://www.schwab.com to see if their portfolio matches their target allocation.

SATURDAY: After you look at the big picture, evaluate each investment to determine if it’s a keeper or should be sold. Morningstar’s Quick Take reports at https://www.morningstar.com can brief you on a mutual fund’s performance relative to its peers; more comprehensive reports are available for a fee. Stock research services such as Hoover’s Online at https://www.hoovers.com and Value Line at https://www.valueline.com offer in-depth stock analysis to subscribers.

SUNDAY: Consider the tax consequences. Buying or selling in a taxable account can affect your tax bill come April 15, 2001. If you need to reallocate a portfolio that includes both taxable and tax-deferred accounts, financial planners typically recommend using tax-deferred accounts such as 401(k)s or IRAs for the bulk of your re-balancing.