When you go on a trip, a lot of times it helps to refer to a packing list to make sure you have everything. When putting together a financial plan, do you have everything in order? Let’s talk about what you need to put into your financial suitcase.

At some point we’re going to want to travel again once all of this is over. So, let’s daydream for a bit about packing up to go somewhere exotic or somewhere relaxing. If we were to pack a financial suitcase, what do we need to keep in mind?

If you pack for a trip, you want to pack efficiently and effectively. This might mean not packing everything together. You don’t want to risk losing everything in one bag or maybe some things don’t go well together. Likewise, in your financial suitcase, you want to diversify.

While you always hope you arrive with all of your luggage, sometimes you lose your luggage for a day or two. How can you prepare for this in the financial world? In many cases, you’ll get it back eventually, but what if you needed it right then? It’s important to keep a few things separate and on you when you travel just in case something happens. Understand your risk tolerance in the market so you can determine what you are able to potentially lose.

When you travel, you make sure to package your toiletries in a way that it won’t explode all over your clothes if something were to go awry. Similarly, when you invest in the market you want to keep your investments separate so that one doesn’t ruin another. You have some assets that are liquid, some that are protected, and some that are different types of assets. Are all of these assets arranged safely in your portfolio?

Listen to the entire episode or click on the timestamps below to skip to a specific segment.

0:46 – Where can Americans travel right now?

3:22 – How can we be sure we’ve packed efficiently? 

5:02 – How do you deal with “lost luggage” in the financial world?

7:56 – How do you protect your assets?