Most people generally review their investments once a year. But many things can happen over the course of 12 months that might impact your investment portfolio. Check out three reasons to consider a midyear investment review.
A financial portfolio checkup can be an effective way to measure progress toward your goals. They can show you what’s working well and uncover issues you may need to address. Many “buy and hold” investors generally review their investments once a year. However, it’s also important to consider doing a midyear portfolio checkup. A variety of things can happen in six months that might impact your portfolio, including market developments, tax law changes, and significant life events such as marriage or the birth of a child.
Depending on your investing style, you may choose to do the review yourself, or you may want to work with a TD Ameritrade Financial Consultant who can walk you through the process and help you assess your investments.
Whether you go it alone or work with a pro, here’s how a midyear portfolio checkup could help you manage your portfolio.
The first few months of 2019 have seen fairly steady gains and low volatility, but many investors are on guard for when calm days may end and volatility could spike. With that in mind, investors may want to reconsider their portfolio allocations. For example, they may want to adjust their proportion of stocks and bonds to become more conservative or aggressive, depending on how they think the market is faring and what their goals are.
Interest rate changes affect the performance of stocks and bonds, which in turn could impact the value of your investments. The Federal Reserve raised rates three times in 2018, and many analysts do not expect any more increases this year. Still, the possibility is worth keeping in mind.
A midyear portfolio checkup could help you determine if your asset allocation is suited for your goals, and if your portfolio is positioned for a potential rate change. It might also reveal if you’re potentially overweighted in a particular asset class or sector given the current market conditions.
Based on your findings, you might consider:
If you don’t enjoy following the markets, you may want to consider a managed portfolio solution offered by TD Ameritrade Investment Management, LLC. With a managed portfolio, financial professionals monitor your investments on your behalf and rebalance the portfolio as necessary.
Have you experienced a significant event like marriage, the adoption or birth of a child, the death of a loved one, or taking on a new job within the last six months? If so, it’s important to make sure your financial plan aligns with your new situation. A midyear portfolio checkup can help you determine the types of changes you might need to make. You may want to:
Life can get pretty hectic and cause your portfolio to fade into the background. But it’s important to schedule time to review your investments. It’s really the only way to know if you’re making progress toward your goals and to identify potential opportunities to help boost your savings.
If you’re a TD Ameritrade client, consider kicking off your review by logging in and checking your account. It's also a good time to name or update a beneficiary to ensure your assets are directed to the people or charities you choose. You may also want to consider scheduling a goal-planning session with a TD Ameritrade Financial Consultant who can help you evaluate your existing financial plan or work with you to create one that’s tailored to your needs.
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