HOW TO REVIEW YOUR INVESTMENT PERIODICALLY TO DETERMINE WHETHER YOU ARE MAKING PROFITABLE INVESTMENTS OR NOT
John Wooden says, “without proper self-evaluation, failure is inevitable.” This evaluation is not just limited to individual strengths or weaknesses but to all areas of life. As a finance firm, we believe it is important for our clients to review their investment portfolios from time to time. This is to help them stay abreast of their investments and also give them the platform to make informed decisions from time to time. Below are a few helpful tips to help you begin this journey.
1. Upload your investment portfolio to an investment tracking tool: this comes in handy in giving a full pictorial view of one’s investments. Apps like Personal Capital or Morning Star offer this service at little to no cost and is easy to use.
2. Assess your stock and bond allocation: Financial experts recommend that the number of stocks and bonds one has should depend on how close one is to retirement. Those who are close to retirement should have more investments in stocks than those who are not. It is therefore important to assess how one is faring on this scale.
3. Evaluate stock allocation: ask yourself, do you have stocks largely in local markets or do you have stocks in international markets? Are your stocks restricted to small and mid-enterprises or do you have stocks in big companies? Assess and find ways to boost your stock allocation profile.
4. Evaluate bond allocation and other investments: Evaluate the portion of the investment in bonds and other investments to see if it’s meeting the target investment returns. If not, rebalance appropriately.
5. Evaluate financial advisor’s fee: The job of giving expert advice on money matters is tasking but clients have to review from time to time to see if this investment is worthwhile. If after assessing, you think you would love to take up the job by yourself, then, you can consider apps like SmartAdvisor. But if you would like to work with financial experts, Secure Capital is ever ready to work with you.