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FINRA's Tips on Ways to Make 2018 the Strongest Financial Year Yet

Posted on January 7, 2018 at 11:35 AM

FINRA issued an Investor Alert to help the investing public plan for their investments in 2018. The six tips provided in the Alert include:

1. Evaluate Your Spending Plan or Budget

You need to set a budget, is fundamental to your financial health so that you don’t overspend. Check out the following guide to help you establish your budget: http/www.finra.org/investors/how-create-budget-and-stick-it-7-steps.

2. Set New Goals

You should check how far you've come toward meeting your savings goals (both long and short term)—and to celebrate your accomplishments— to help set new goals for this year. Do this by answering the following questions – are you: (1) satisfied with personal finances, (2) spending less of their income, (3) having no difficulty making ends meet, and (4) setting aside emergency funds, according to the FINRA Foundation's study.

3. Check Your Credit Report

Your credit score—a number typically ranging from 300 to 850 that is mathematically derived from your credit history— can be used to predict how likely you are to pay back a loan on time.

4. Rebalance Your Portfolio

You should check the performance of your investments to see how your investment mix shifted throughout the year. If so, now might be a good time to rebalance. That is, restoring the asset allocation in your portfolio—the portion of your total portfolio you invest in different asset classes, like stocks, bonds, and cash or cash equivalents—to your original target, or adjust it to an allocation that best fits any revision you may have made to your investment objectives.

5. Zero in on Fees

You should check out FINRA's new-and-improved Fund Analyzer tool to: 1) help you understand the impact of fees and potential discounts; and 2) calculate how a fund's fees, expenses and discounts impact the value of a fund over time.

6. Free Yourself of Financial Clutter

You should develop a well-organized document-retention process…and to “clean house” from time to time with a good shredding session. Consider getting yourself reorganized at least once a year, and purging any unnecessary old bills or receipts.

Read More:

FINRA Investor Alert


Click Here for a guide on how long you should keep different kinds of financial records.

Categories: General