Got a minute? Got five? Then you have enough time for a quick review of your investments. So pull out your most recent retirement and other investment account statements and take five minutes to see where you stand.
Check the Numbers
Look at your current account balance. Is it up or down for the year? While short-term changes in your portfolio’s value should be expected and shouldn’t affect your investing strategy, keep an eye on your balance from statement to statement. If your account value regularly drops while the market as a whole remains stable or rises, you may want to revisit your investment choices.
Compare with a Benchmark
Your account statement may include a chart or some other graphic displaying the short- and long-term investment returns of some common market indexes. Use these benchmarks to gauge the performance of your own investments.
Knowing whether your investments have outperformed, underperformed, or matched their benchmarks can help you assess your progress.
Consider Your Asset Mix
Your portfolio’s ability to withstand market ups and downs may largely depend on the mix of investments you’ve chosen. Review your statement to make sure you’re holding investments in different asset classes, in keeping with your risk tolerance.
Check the Bottom Line
As part of your review, assess your gain or loss on each individual investment, as well as your total portfolio gain or loss, during the period covered by the statement. By keeping track of any investments that are consistently lagging, you’ll be ready to make adjustments to your portfolio if needed.
A five-minute checkup shouldn’t take the place of a thorough annual review conducted with your financial professional, but it can make you aware of potential changes in your investments’ prospects.