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Welcome to the Whole-Hearted-Way newsletter. I hope you enjoy this
information and the practical tips. Feel free to email me with any
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Enjoy!
-Fern Alix LaRocca CFP® EA

Panic and Sell or Hold?

Once a month I will be answering a question from my readers. Please submit your question to me by email to fern@wholeheartedway.com. I will pick one a month to answer.

Question- I am watching my account value go down every day. Should I sell my losers and keep my winners? ……….Anonymous

Answer- You should not sell your positions just because we are in a market correction. If you have a portfolio with an asset allocation that fits your needs than that asset allocation should change only if your needs change- not because the markets are down.

A diversified portfolio will weather a storm like this. Don’t be naïve in thinking that your portfolio will always go up. It won’t and no one can guarantee that it will. But a good portfolio that is designed to give you:

* the return you need to meet your short and long term goals
* risk that you are comfortable with ( alpha, beta, standard deviation, and sharp ratios)
* tax advantages that you seek (long term capital gains, tax-free income, and dividends)

will always win out in the long run.

If you don’t have such a portfolio – than seek the advice of a fee-only planner (www.napfa.org) or a Financial Coach like myself to get you where you want to be.

I will be sending out the newsletter twice a month this year. More freebies will be available to subscribers only so click on this link to subscribe.

Coaching Question- What holding has the largest percentage of your portfolio and why?

News Flash! –

I will be holding a FREE teleclass –The 7 Steps to Creating Your Own Financial Plan on Wednesday, February 20th, 6 p.m. PDT. Email me (fern@wholeheartedway.com) to register and you will receive the call in number.

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August 2007-- this column is produced by Whole-Hearted-Way and
provided by Fern Alix LaRocca CFP® EA