Over the years, you’ll likely:
- Switch jobs or change careers
- Focus on new and diverse financial goals
- Be impacted by outside factors, such as stock market performance
And as these changes continue, your financial needs will shift throughout a lifetime, which will make your investment needs continually change as well.
Your investment portfolio shouldn’t be something that is initially set up and then forgotten about as the years roll on.
A dedicated financial planner and investment advisor will continually have a detailed eye on how small and large-scale changes can impact your bottom line.
Haven’t examined your investment portfolio in a while and aren’t sure if it’s time to change your financial plans? Look for these signs it may be time to revisit and possibly revise your investment strategies.
You Made a Big Life Change
Getting married, having a baby, or approaching retirement are all common stages in life, and they are all indicators your financial needs are changing.
For newlyweds, an investment portfolio makeover should be an early priority as you are merging your assets. The coordination of your finances may result in redundancies or opportunities to expand.
- For example, do you both hold significant positions for the same bonds, mutual funds, or stocks?
- Do you share the same tolerance for risk?
These are essential questions a portfolio examination can answer.
As for new financial goals, a revised financial plan may be in order that entails new investments with potential tax benefits.
Educational saving plans, retirement plans, and other investments tailored to a specific life goal are necessary.
Your Portfolio Moves in Tandem to the Stock Market
When it comes to an investment portfolio, diversification is key. A diversified portfolio reduces risk by allocating investments and assets among various financial industries, instruments, and other opportunities, resulting in both security, as well as multiple routes to financial gains.
But there are telltale signs your portfolio may not be as diversified as you think, starting with the stock market.
If your investments fluctuate step-by-step with how the stock market is performing, then it’s time to expand your investments. You can expand by adding bonds, gold, foreign stocks, or other strategies to your asset allocations.
Your Income Changes
Perhaps you’ve just secured a big promotion and suddenly have excess funds to invest. Or perhaps your income has been scaled back. Maybe it’s time to focus on having more funds available sooner rather than later.
When there’s a big change to your income, a big change to your overall financial strategies is likely in order as well.
If you have a financial windfall, it’s time to talk with a financial advisor about how to maximize the benefits of your new success.
Perhaps you can afford to take more risks in your investment portfolio, or continually save and invest more funds in the months to come.
If you need investment returns sooner than expected, it may also be time to reexamine your opportunities. You need to ensure you can access your money when you need to.
Your wealth manager can guide you when it comes to a significant change in income and can recommend strategies to keep you covered until your financial situation once again inadvertently changes.
You’re Just Not Sure How Your Portfolio Is Doing
How is your investment portfolio stacking up to your benchmark, such as the performance of the S&P 500 Index?
If you don’t know the answer to this question, then it’s definitely time to reexamine your portfolio. Reach out to an experienced wealth advisor for guidance.
You don’t have to know how every aspect of your investment portfolio is constantly performing. However, your investor and wealth manager should keep you abreast of any:
- Potential impacts to your overall wealth
So if you’re unclear about your portfolio’s success, it’s time to consult with an expert. At Saddock Wealth, we work step-in-step with our clients to ensure our service-driven solutions align with their financial goals.
Schedule your consultation today, and conduct a checkup of your investment portfolio to ensure that as life changes, you don’t miss a thing.