What to Consider When Evaluating an Investment Portfolio
July 14, 2022
On a regular basis, it’s important to sit down and review your existing investment portfolio. This helps you determine if you’re on track to achieve your investment goals and allows you to make necessary changes, if applicable, to assist you with updating your investment plan. It can be very beneficial to do this with the help of experienced and qualified financial experts.
Start by considering this as an overall wellness check by asking the question, am I in progress to achieving my goals? Look at your savings rate, your current portfolio balance, and any other details associated with whatever goal you’re trying to reach.
Most people need to save between 15 and 20% to achieve their goals. If you are saving for goals outside of your own retirement, such as paying for a children’s college education or a home down payment, increase your savings level as well.
Your portfolio balance is another important thing to review, and it’s a good idea to revisit your intended withdrawal rate. If you’re already retired, the main way to determine the overall wellness of your investment portfolio is the withdrawal rate. This is all of your portfolio withdrawals for the year divided by the total balance of the portfolio at the beginning of the year.
You might invest more aggressively earlier in your career, but having data points about the performance of your portfolio, you could decide to adapt this strategy in the future. Continuing to revisit these issues is very important for protecting what is most important to you since there is no “set it and forget it” aspect of investing.
If you need further assistance with these action steps, set aside a time to meet with a qualified team of financial professionals. We’ll work with you over the course of several weeks to help you understand your primary goals and outline the strategies and documents to help you get there.