Going to the Doctor or Dentist for that annual check- up can be a pain literally and figuratively. No one wants to be poked, prodded, or told you’re falling apart. But it is part of life; a necessity to continued good health. Even the Bionic man needs a tune up now and then.
You see, ensuring your financial health is no different than ensuring your physical health. So, sit down with your advisor and confirm your financial plan is still on track. It may seem like an unnecessary step in your investing process, but it is part of becoming an engaged investor. A portfolio review provides the opportunity to make helpful adjustments or reassures you that everything is on target.
Most portfolio reviews just highlight performance and, if everything looks good, you’re told to leave it alone. Just relying on performance is only analyzing the surface of your financial well-being. Investing is a dynamic process; no setting and forgetting here. We encourage investors to get a more in-depth look at their portfolio for several reasons – those reasons include:
- Your investment goals may have changed. You may have multiple financial goals and a single investment portfolio to help you meet those goals. As such, it is a good idea to regularly revisit your needs and goals to make sure your portfolio aligns with those priorities. Maybe you’re saving for a larger home but also have children that you want to put through college; you may need to change your portfolio to reflect both goals while assessing the current costs associated with each.
- Your investments may have changed. Investments are not static. Just as your goals can change, so can your actual investments. A mutual fund or an ETF may have changed its approach to its investment objective or a company in which you own stock may experience a change in its business prospects. A portfolio review allows you to examine not just your broad investment goals, but also the role each investment plays within your overall portfolio.
- You may want a second opinion. Whether you have a financial advisor or not, it may make sense to have a second pair of eyes look at things. Maybe your portfolio isn’t generating enough income. Maybe your current advisor isn’t the right fit for you. Maybe it’s time for some new ideas. Whatever your needs are, a second-party review allows you to receive another opinion on your current situation and portfolio configuration.
- Your retirement plan may change. Maybe your retirement plan is based on the notion that you’ll work until you’re 65, but you’ve been thinking about early retirement. The beach life is calling your name – pass the Corona, please. This is just the kind of thing you can and should bring up in a portfolio review.
The Last Word
In addition to the above reasons, things like taxes and estate planning may impact your portfolio. Now is a time to review all things financial, so give your portfolio that needed check-up. It’s like giving your portfolio that Bionic suit and then you can laugh all the way to the bank.
Want to learn more about our portfolio review solutions? Contact us today at [email protected] or visit www.MackHouseCapital.com