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No one likes to think about the possibility of not being able to manage their own affairs. Still, accidents and illnesses do happen. If you worry about who would manage your assets if you couldn’t do it yourself, then you might want to consider a revocable living trust.

One way to help control risk and increase your portfolio’s chances for a healthy return is through diversifying your investments across and within the major asset classes.

The mix of assets chosen for your portfolio should reflect your goals and the level of investment risk you are willing to take to reach them. But fluctuations in the securities markets can change a portfolio's allocation over time, exposing it to more or less risk than intended and leaving it less diversified.

The word trust may make you think first of a tax cut. It is true that trusts can save taxes in many situations, but trusts have other advantages, too. For example, one type of trust you may have heard something about a Revocable Living Trust can be very useful.

That is a question you may be contemplating soon due to a change in the tax law. Starting in 2010, anyone with a Traditional IRA will be able to convert it to a Roth IRA, regardless of income or filing status.