Ask Matt: How investors prepare for 2017

Q: What should investors do in 2017? 

A: It was an eventful 2016 for investors. Now that most investors are making money on their stocks at least, it's a perfect time to come up with a game plan for 2017.

The year's volatility is a good reminder to investors of the importance of having the correct asset allocation. The types of stocks you own have a large bearing on not just the returns you can expect, but also how much risk you're exposed to. It's better to pay attention to how risky your portfolio is before the market might reverse course than after.

With a new president with very different objectives for the economy entering office in January, investors need to take inventory of the investments they own and make sure they're comfortable with their risk profile. Morningstar offers a tool that's very helpful for investors who want to examine their portfolios before the year. It's called the Instant X-Ray. You can type in all your investments and Morningstar will examine how risky the portfolio is and pinpoint which regions of the world you're most exposed to. The technology is also available in Morningstar's portfolio tracker and also Quicken 2017 Premier.

It's unclear how the changes by the Trump administration will affect the market. You can't control that. You just make sure your portfolio is diversified against trouble in any one company, investment type or geography.

USA TODAY markets reporter Matt Krantz answers a different reader question twice a week. To submit a question, e-mail Matt at mkrantz@usatoday.com or on Twitter @mattkrantz.