If you’ve had the good fortune to visit Italy, you may have seen one of the world-famous Roman aqueducts.  These aqueducts are one of history’s greatest engineering accomplishments.  The aqueducts, built between 312 BC and 109 AD, were able to supply Rome, and its estimated one million inhabitants, with over 300 million gallons of water every day.  To place that in perspective, that’s over 126% of the current water supply of Bangalore, India, a city of over six million residents.

Rome and many other communities thrived because of their access to a clean and abundant water supply.  The aqueducts were the life blood of their communities and were treated as such.  Therefore, a lot of  time and effort went into maintaining these crucial pieces of infrastructure.  In fact, some communities still use these same aqueducts for irrigation.  Even in Rome, some of their ancient fountains are still fed by aqueducts.

So,what does this have to do with investing?  Actually, quite a bit.

As a financial advisor, I speak with a lot of people. In many cases, they do have a rock solid financial plan or portfolio.  However, similar to the aqueducts, even the most solid plan won’t work forever without some attention and maintenance.

Maintaining Your Financial Aqueduct

There are a few things you can do to properly maintain your financial aqueduct. First, make sure you read through your statements and the information that you receive from your financial advisor and your bank.  There is no way of knowing you have a problem unless you look at and understand your statements.

Second, keep copies of all of your statements.  You’ll need them for your taxes, but you’ll also want to compare from time to time to see if your investments are trending in the right direction.

Third, meet regularly with your advisor.  Make sure you review your plan (you should have a plan by the way).  Make sure that you ask about any concerns or questions you may have.  Keep notes during your meetings, even if they are over the phone.

Finally, review your portfolio regularly.  Make sure you know what investments you own and how they are performing.  Ensure that each investment and fund you’ve paid into produces enough to help you reach your objectives.  Understand and be comfortable with the costs, risks, and liquidity of your portfolio.

The Romans built a system that would take care of them and their community for generations.  Likewise, your plan needs to be maintained for your own legacy to continue.

To help preserve your legacy, we’ve designed the “Guarding Your Legacy Checklist” to organize and store all your vital documents. Feel free to download this complimentary organizer with no obligation, and share the checklist with your family. And don’t forget to make any changes necessary each time you change or update your own financial aqueduct.