Now that summer is in full swing, you’ll probably be enjoying time off at your favorite vacation spot, if you haven’t already done so. One of the last things that you want on your mind as you lounge in your getaway is your investment portfolio, but after you get some well-deserved rest, you might want to take some time to make sure your investments are working harder than ever to meet your financial goals.

Review Your Investment Mix.
If you’re a long-term investor, you’ve probably been
advised countless times to avoid the temptation to tinker with your portfolio as the value of your investments go up and down. Many experts say your investment expectations should be based on a long-term time frame, so you shouldn’t worry too much about temporary downturns in your portfolio’s value. That’s good advice, but it doesn’t mean you should put your investments on auto-pilot.
If you haven’t recently looked at how much of your portfolio is invested in cash, stocks, and bonds, you might be in for a surprise. The stock market’s fluctuation in recent years could mean that your portfolio may be out of balance. If this is the case, you may want to reposition your portfolio to reflect your investment goals, time horizon, and comfort level for risk.

Give Your Budget A Mid-year Checkup.
Now that your annual household budget has been in place for half a year, look at how your spending is matching up with your budgeted amounts. For example, if you budgeted $1,000 for new clothing this year and have spent $800 through July, you have only $200 left for the next six months of the year. That should not only be a warning sign to curtail your shopping sprees; it is also an indicator that you may be in danger of tapping your savings and investments to pay for expenses exceeding your income.
Identify Maturing Municipal Bonds.

Many municipal bond issues typically mature in June and July. If you didn’t make a plan ahead of time, now is the time when you need to figure out how you’re going to reinvest the principal you receive from your maturing bonds. Before deciding how to reinvest your bond proceeds, determine whether your investing timeline, goals, and risk tolerance have changed. If not, you may want to buy more
municipal bonds to replace those that have matured. Your need for federally tax-free income, your tax bracket, and your
investment objectives should serve as your main criteria for determining how municipal bonds fit into your over-all investment strategy. Be aware that you may receive a lower interest rate on municipal bonds purchased today. Because municipal bonds are exempt from federal taxes (unlike Treasury bonds), you may end up with more in your pocket after taxes by buying municipal bonds and holding them until maturity. Keep in mind municipal bond income payments may be subject to local taxes, state taxes and/or the alternative minimum tax.

Give yourself some time to relax this summer, but don’t take an extended vacation from monitoring your investment portfolio and investment plan. In the long run, you’ll rest easier knowing that your finances are on track to helping make your dreams come true. n

This article was written by Wells Fargo Advisors and provided courtesy of Nicole McGrouther in Red Bank, NJ at 732-219-6459.
Wells Fargo Advisors is the trade name used by two separate, registered broker-dealers and nonbank affiliates of Wells Fargo & Company providing certain retail securities brokerage services: Wells Fargo & Company Member, NYSE/SIPC, and Wells Fargo Advisors, Member FINRA/SIPC.

Investments in securities and insurance products: NOT FDIC-INSURED/NOT BANK-GUARANTEED/MAY LOSE VALUE

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