When the end of each calendar year rolls around, we often contemplate what we can do today to improve our present situation. When the topic is investments, there isn’t much that can be done once the end of the year is near, but it is an excellent time to be considering what to do for the coming year. Here are a few suggestions:

Take a “financial snapshot” of where you stand today. You can refer to this as your Personal Statement of Financial Position. Make a list of all your assets, and another of all your debts, attributing an accurate value to each item. The difference between the two lists is your current net worth.

Compare your 2007 net worth with your 2006 net worth, and hold on to this statement to compare to 2008. How did you do? Are you holding assets that are performing up to benchmark averages, like the S and P 500 index, for your stocks or mutual funds? Or the national money market averages for your savings products?

You’ve worked hard to earn and save your money. Now it’s important your money is working just as hard for you. Work with an advisor to identify underperforming assets, or debt that could be paid off or refinanced to your benefit, and make the changes accordingly.

Evaluate your IRAs. Are you benefiting from IRS tax advantages through investments in a Roth IRA, or saving for your children’s or grandchildren’s education through a 529 plan? Both allow for tax-free withdrawals on your earnings and principle. Over a period of years, the benefit provided versus taxable saving toward the same goal can be dramatic.

Make your Regular or Roth IRA contributions as soon as the IRS allows. By making your 2008 IRA contribution in January of 2008, instead of waiting until the April 2009 deadline, you can enjoy up to 15 ½ months of earnings not subject to current taxation, thereby decreasing your 2008 tax liability. Again, over a period of many years of following this practice, the net financial benefit can be significant.

Rebalance your financial assets to maintain proper diversification. Diversification is fundamentally important in adding an element of safety to investing. As market performance changes over time, and your investment time horizon shortens, it is important to maintain a proper allocation of your financial assets.

For example, let’s say at age 50 you feel an allocation of 50 percent stocks, 30 percent bonds and 20 percent cash is appropriate. However, if over a period of time you find the stock market has risen 30%, you may find you are now holding 65% stocks, 20% bonds and 15% cash. It may be wise to “reallocate” your holdings to maintain your original diversification and realize your gains.

Many investors overlook this strategy, particularly with their 401(k) plan. An annual review with an experienced financial advisor can be valuable in this regard and there’s no time like the present – even if we are approaching the end of the year.