As a general rule, it’s a good idea to review your investments at least once a year. This will allow you to see how your investments have performed over the past year and make any necessary adjustments to your portfolio. That’s true if you don’t actively manage your investments and you’re in the middle of your active life. This allows you to avoid getting fussed by short term movements in valuations, which could lead to bad outcomes such as panic selling.
However, there are some situations where you may want to review your investments more frequently. For example, if you have a short-term investment horizon or if you’re approaching a major life event (such as buying a home or retirement), it may be a good idea to review your investments more frequently. In these cases, you may want to review your investments every few months or even every few weeks.
How To Review Your Investment Performance
When you’re reviewing your investments, there are a few key things you should focus on. First, you should check to see how your investments have performed. Have they increased in value, or have they decreased? If your investments have changed in value, you may want to consider rebalancing your portfolio to reduce your risk.
In addition to looking at the performance of your investments, you should also review your investment goals. Are you on track to achieve your goals, or do you need to make some changes to your investment strategy? For example, if you’re saving for retirement, you may want to review your retirement savings plan to make sure you’re on track to have enough money to retire comfortably.
Another important aspect of reviewing your investments is to make sure your portfolio is diversified. Diversification means spreading your money across different types of investments, such as stocks, bonds, and cash, to reduce the risk of losing money. If your portfolio isn’t diversified, you may be taking on more risk than you’re comfortable with.
Your Investment Performance Affects Your Long Term Goals
To make sure you’re on track with your investments, there are a few steps you can take. First, you can consult with a financial advisor who can help you develop a customized investment plan that is tailored to your individual goals and risk tolerance. A financial advisor can also provide guidance on how to rebalance your portfolio and make any necessary changes to your investment strategy.
Another option is to use online tools, such as our retirement calculator, to help you track your progress and make sure you’re on track to achieve your goals. These tools can help you see how much money you need to save, how your investments are performing, and whether you need to make any changes to your investment strategy.
In conclusion, it’s important to review your investments regularly to make sure you’re on track to achieve your goals. In your 20’s to your mid-50’s, yearly is enough unless you plan making a large purchase such as buying a house. Then, monthly reviews are preferable. Whether you do it yourself or work with a financial advisor, taking the time to review your investments can help you make informed decisions and stay on track with your long-term financial plan.
