Review Your Investments Regularly to Ensure They’re Still Aligned with Your Goals

Investment Review

If you’re comfortable managing your portfolio, take an active approach to your investments. The value of investments can fall and rise – there’s no risk without reward in the financial market. Checking your portfolio regularly is crucial because it can bring asset allocation in line. With time, asset allocation can change. It all depends on the way the investments perform. Determining what combination of assets to hold onto in your portfolio is a personal one. Figure out what works best for you by taking into account the time horizon and your ability to tolerate risk. 

Investing is a long-term pursuit, so monitor your investments systematically. Watch how they’re performing and adjust them accordingly. Your portfolio can include any mix of financial assets, like stocks, mutual funds, bonds, ETFs, futures, and currencies. Keeping an eye on all these assets can be challenging. You need to know what’s going on at all times with your investments, not just once in a year when you have to report your gains or losses. It involves serious mental gymnastics. Use software or an app to manage the process. 

Do Your Investments Still Match Your Financial Goals? 

For most people, the main goal is a financially secure retirement. You should have enough to live a comfortable lifestyle after leaving the workforce. Make your money work for you. More exactly, earn a rate of return that surpasses inflation and allows your principal investment to grow throughout the years. Financial goals don’t have to be set in stone. You can revise them throughout your life. Some examples include a new home and regular travel. Life events and changing priorities will affect your financial strategy. 

You have a clear idea of what you want out of your financial life. Your financial goals align with your values and personal objectives. The question now is: Do your investments still match your financial goals? You’ve worked hard to make sure you have enough money at the end of the day. And you’ve invested this money in the most reliable ways to build wealth over time. But does your investment strategy align with what matters the most? Maybe not. Eliminate distractions and focus on the things that actually work. 

A Mobile App Offers Real-Time Information on All Your Investments – All in One Place  

These days, there are several options available, some of which are hosted online under the software as a service (SaaS) model, while others are programs you can install on your computer or smartphone. With an investment app, you can get information on the spot on the status of your portfolio. You can check your investments’ performance once a day or more. The best investment tracking app is the one that works for you. The best app in the world is useless if it’s troublesome. Some software have a higher learning curve. 

A good example of a highly functional app is Delta Investment Tracker. It’s a multi-asset investment tracking app that makes it possible to manage several portfolios and monitor the live performance with various tools and charts. The app provides a clear picture of your overall financial situation. It comes with a level of simplicity that you will appreciate. If you’d like to find out more about Delta Investment Tracker, please visit www.delta.app. The app will get you where you want to be in the future. 

Portfolio management is no longer complicated when you use a software application. You can sync and download financial information in an instant. You have up-to-the-minute information, so you always know where you stand. Seeing your balance increase over time can be quite motivating. If you’re investing on your own (or have a robot advisor), check your investment portfolio once a month to make sure there are no dramatic changes. Looking every day makes you more susceptible to rash decision-making. Also, it’s bad for your mental health.

How To Make Investment Choices That Enhance Your Financial Wellbeing 

Your investments should be suitable for what you’re trying to accomplish. It takes just a couple of seconds to open your app and reach a personalized dashboard that tells you exactly how your investments are doing. Review the portfolio composition regularly to make sure it remains on track. You can compare your returns with those of similar investments in a benchmark index. If you’re paying too much in ways, don’t worry as there are other lower-cost alternatives. You should meet your goals without having to borrow from friends or avail loans. 

After some years, you may come to the conclusion that your portfolio hasn’t taken you anywhere. If your investments aren’t helping you reach your goals, make some changes. Investing requires a methodical and disciplined approach. Achieving your financial goals requires you to: 

  1. Ask yourself why you’re investing in the first place. Write down your goals so that you can narrow your focus. The clearer you get, the stronger those goals become, and the more likely you are to achieve them. When your investments are linked to your goals, you become a focused investor. 
  2. Identify the right kind of strategy to get you to your goals. The great thing about investment strategies is that they’re flexible. If you’ve chosen one that doesn’t suit your risk tolerance, you can make the necessary changes. However, be careful. Take the time to understand the characteristics of each investing strategy before settling on one. 
  3. Put a date to each financial goal. Think about the time frames in which you want to accomplish your goals. Each financial goal should be given a realistic time frame. Not all goals can or should be accomplished in the same time frame. Keep out the less important ones for the time being. You can address those financial goals later. 
  4. Determine how much you need to invest. Determine what amount would be appropriate for your level of income. It shouldn’t be a blind exercise. Understand the future value of the amount required to satisfy your goals. Don’t neglect the power of inflation on wealth. 
  5. Figure out your risk tolerance. Establish the amount of loss you’re willing to tolerate while making an investment decision. Don’t allow yourself to be frightened and take a too conservative approach. Risk and reward are closely linked. 

The urge to do something can be very powerful at times. Even if your investments aren’t performing in line with your expectations, don’t be drawn into short-term actions.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.