facebook pixel
Attleboro Wealth Management

Investment Review: Evaluating Your Portfolio and Planning for the Year Ahead

As we approach a new year, it’s an opportune time to reflect on your financial journey and assess the performance of your investment portfolio. Conducting a comprehensive investment review allows you to gain insights into how your investments have performed, identify areas of strength and weakness, and strategize for the year ahead. In this article, we will guide you through the process of evaluating your portfolio and planning for a successful financial future.

Step 1: Assessing Portfolio Performance

The first step in the investment review process is to assess the performance of your portfolio. Look at each investment’s returns over the past year, three years, and five years, if possible. Compare the performance of your portfolio as a whole to relevant benchmarks. Keep in mind that short-term fluctuations are common in the financial markets, so focus on the long-term performance and the alignment with your investment objectives and risk tolerance.

Step 2: Reviewing Asset Allocation

Asset allocation is a crucial aspect of portfolio management. Evaluate your current asset allocation to ensure it aligns with your financial goals and risk tolerance. A well-diversified portfolio spreads risk across various asset classes, such as stocks, bonds, real estate, and cash. Adjust your allocation if necessary to maintain a balanced and risk-appropriate portfolio as you work through your investment review.

Step 3: Rebalancing Your Portfolio

Market fluctuations can cause your portfolio’s asset allocation to deviate from your intended targets. Rebalancing involves adjusting the asset allocation back to its original proportions. By rebalancing regularly, typically annually, you ensure that your portfolio remains in line with your long-term goals and risk tolerance. Rebalancing can also provide opportunities to buy undervalued assets and sell overvalued ones.

Step 4: Analyzing Individual Investments

In this step in the investment review process, you’ll take a closer look at each individual investment within your portfolio. Assess whether the reasons for initially including each investment still hold true. Review the fundamentals, management team, and outlook for each company or asset. If an investment no longer aligns with your investment strategy or has changed fundamentally, consider replacing it with a more suitable alternative.

Step 5: Considering Tax Implications

Investment decisions can have significant tax implications. As you complete your investment review, keep your tax situation in mind. Selling investments can trigger capital gains taxes, while tax-efficient investments can help minimize your tax liability. Consult with a tax advisor to strategize on the best approach to manage taxes within your investment portfolio.

Step 6: Reevaluating Financial Goals

As you evaluate your investment portfolio, take the time to reevaluate your financial goals, too. Assess whether your objectives have changed, and if so, make adjustments to your investment strategy accordingly. Whether you are saving for retirement, education, or other milestones, aligning your investments with your goals is essential for long-term success.

Step 7: Working with a Financial Advisor

Navigating the complexities of the investment landscape can be challenging, so don’t worry if some of the steps above feel confusing or overwhelming. Consider working with a trusted financial advisor to conduct your investment review and plan for the year ahead. A financial advisor can provide objective insights, personalized advice, and expertise to help you make informed decisions and stay on track toward your financial goals.

Would You Like Assistance With Your Investment Review?

An investment review is a valuable exercise that allows you to assess the performance of your portfolio, ensure proper asset allocation, and realign your investments with your financial objectives. As we approach the new year, take the time to conduct a thorough evaluation of your investments, considering performance, asset allocation, individual holdings, tax implications, and financial goals.

Working with a financial advisor can provide you with the guidance and support needed to make informed decisions and create a well-rounded investment strategy for the year ahead. If you’d like to schedule a conversation with a member of the Attleboro Wealth Management team, please reach out. Remember, proactive portfolio management is key to achieving long-term financial success!

Share this post:

Facebook
Twitter
LinkedIn

More Resources

Financial planning strategies for small business owners can help you build a more secure and successful financial future.
entrepreneurs

Strategic Money Moves: Financial Planning Strategies for Small Business Owners

As a small business owner, you face unique challenges and opportunities when it comes to financial planning. Making strategic money moves is essential to ensure the long-term success and stability of your business. In this article, we will explore key financial planning strategies specifically tailored for small business owners. By implementing these strategies, you can …

Strategic Money Moves: Financial Planning Strategies for Small Business Owners Read More »

Read More »
Avoid these common investor psychology traps to make more fact-based investment decisions.
behavioral finance

Investor Psychology: Avoid These Damaging Behavioral Traps

If you think investing is solely about numbers, it’s time to think again. Investor psychology – that is, the mental and emotional factors that impact the way we as humans make investment decisions – can also have a significant impact on your relative portfolio success. Looking beyond statistics and market trends and focusing on investor …

Investor Psychology: Avoid These Damaging Behavioral Traps Read More »

Read More »
Long-term care is costly and it’s helpful to have a plan in place to pay for it if the need arises in retirement.
long-term care planning

Is Your Retirement Plan Missing a Long-Term Care Strategy?

Planning for retirement involves more than just accumulating wealth. It requires considering the unique challenges that may arise once you retire and how they can impact your financial security. While many individuals focus on saving for retirement, one crucial aspect often overlooked is long-term care planning. In this article, we will explore the importance of …

Is Your Retirement Plan Missing a Long-Term Care Strategy? Read More »

Read More »

Get started today

There’s no time like the present to optimize your financial planning and investment strategies. Schedule a no-obligation call to see if our services are right for you.

Mark Byelich has been nominated and has won several awards. Mark Byelich did not make any solicitation payments to any of the award sponsors in order to be nominated or to qualify for nomination of the award. The basis for each award presented on this website is provided by accessing the Internet link to the award sponsor which is available by going to the award sponsor’s icon or name shown on the web pages herein.

Attleboro Wealth Management, LLC is a Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where Attleboro Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Attleboro Wealth Management, LLC unless a client service agreement is in place.

Copyright ©2024 Attleboro Wealth Management

Copyright ©2024 Attleboro Wealth Management

Attleboro Wealth Management, LLC is a Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where Attleboro Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Attleboro Wealth Management, LLC unless a client service agreement is in place.