Financial Portfolio Review

Have You Reviewed Your Financial Portfolio Recently?

As we all know, market conditions can change rapidly which is why it is important to review the assets in your financial portfolio from time to time. Performing regular checkups to review your financial strategy, asset allocation and holdings can help you meet your future goals.

The goal of a financial portfolio checkup is to make sure your investments align with your goals. You may be saving toward your goals and need to strategically put your money to work, or you could be living off of your financial portfolio and need to pay close attention to income potential of your holdings.

If you haven’t reviewed your financial portfolio lately, there is a possibility that your investment mix has become too aggressive. Often times, this possibility can add risk to your financial portfolio which may not align with your plan. In addition, any major life changes you have experienced could change the way you want your money to be invested. Whether you are just starting off in your career and want to be more aggressive, or you are nearing retirement and want to protect your assets against market volatility by creating a more balanced financial portfolio, revisiting your strategy is critical.

Here is a list of action items to consider reviewing during your portfolio checkup:

Review or Create Your Financial Plan to generate income or build your savings. You could establish an automated savings or withdrawal program which can help ensure that your savings or cash flow aligns your priorities and your plan.

Schedule your next portfolio review within the year to ensure your finances are on track and everything is working well for you.
Review your investment strategy by updating your overall investment mix to reflect any major life changes and make adjustments as necessary.

Target areas to rebalance. If your allocation to any asset class has drifted away from your target, you may want to act to get it back into balance. Some investors choose to reallocate back to their target mix periodically, such as every 3, 6, or 12 months.

Review your holdings. Consider whether your stock and fund holdings still make sense for your investment strategy and meet your expectations. Look for holdings to replace, trim, or increase, keeping in mind the costs and potential tax implications of a change.

Review any concentrated positions. You may want to review your holdings if any individual stock or bond position have become too large a part of your financial portfolio. Keep your overall asset allocation and taxes in mind when considering any changes.

Stay on track. Successful investing can start with laying out clear goals and, over time, making sure your performance is on track to meet those goals.

Look for red flags. Keep an eye on holdings that are significantly under- or over performing their asset class benchmarks.

Of course, we are more than happy to review your financial accounts with you and make any necessary recommendations to help ensure you meet your goals. If you wish to meet with one of our Financial Advisors in our Denver office, please give us a call today at 303-741-9772, or contact us on our website by clicking here.