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Time to Take a Personal Financial Inventory -- Part IV

01/26/2011

During the past several weeks, we’ve taken you through Parts I, II and III of our four-part series on getting your 2011 financial house in order. Let’s recap these first three sections before we hit the fourth and final segment.

Part I was all about conducting an inventory of your assets and all of your accounts -- taxable accounts, retirement accounts, insurance and annuities, etc. Part II was about reviewing where, precisely, those assets are invested, including knowing specifically which stocks, bonds, exchange-traded funds (ETFs), mutual funds, variable annuities, etc., you currently own.

Part III in our series was all about reallocating your assets from underperforming investment vehicles into those that you think will give you the best chance of success going forward. Now, this is no easy task, so to help you decide just which areas of the market might perform best this year, we conducted a teleseminar where we dug deep into the details of many of these investment themes. In that one-hour call, we gave listeners some hints as to which investment vehicles I thought represented the best ways to profit in the year ahead. If you’d like to hear an audio replay of this event, all you have to do is register today.

Part IV, the final installment in our series, is what we call: Implementing Success.

This step is all about monitoring and safeguarding your money. You see, once you have placed your bets in the stocks, funds, etc., that you think give you the best chance to succeed, you need to make sure you don’t walk away from the table. When it comes to investing, you have to be an active participant all the time. Not that you have to watch every tick of the virtual tape each day; we are not advocating that. But what you do have to do is be vigilant, and keep good track of what’s taking place in the markets and with your particular holdings.

There are always risks present in markets, and this is something you must keenly be aware of when your capital is at risk. By monitoring the health of the overall market, and by keeping watch on the technical trends in all of your positions, you can mitigate a lot of that risk. Here’s how we do it for our subscribers to our Successful Investing advisory service.

We recently purchased new positions that we believe will return positive results in 2011. Along with our buy orders, we placed stop-loss orders at 10% below our purchase price. We placed these stops well below a level the market may reach in a normal correction, as we do expect a normal correction to occur relatively soon. We can monitor our positions along with the trend in the overall market. Monitoring the progress of the market for the purpose of managing risk is easy -- and it also helps you to sleep well at night.

So, the essence of Part IV of our personal financial inventory series is to be vigilant, to make sure you have stop losses in place, and to know what’s happening with the market and your money at all times. We certainly can help you do this via the Alert, but if you’d like to know more about the specific funds we’re buying, as well as the stop-loss prices on each fund, then I invite you to check out our Successful Investing advisory service by clicking here.

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