海角大神

Financial advisors see client behavior that is all over the map. Some clients take a peek at their accounts every morning while the coffee is brewing. Others merely glance at their quarterly statements. Still others don鈥檛 check in at all; they see their accounts only during annual reviews.

So, how often聽should聽you review your portfolio? While your inclinations may fall anywhere on the spectrum from 鈥渨ay too often鈥� to 鈥渘ot nearly often enough,鈥� there are certainly some times when you should absolutely be going over your accounts, reviewing your strategy and progress toward your goals, and double-checking whether you need to rebalance or make other changes. Here are five of the most important times:

1. As part of a regular review process

If you鈥檙e working with a financial advisor, ask how often you should touch base. Keep in mind that most portfolios don鈥檛 require constant聽聽or adjustment, so if your investment goals haven鈥檛 changed, it鈥檚 more than likely that your portfolio won鈥檛 need to, either. Your advisor will monitor your account to make sure it is in balance. If you review performance numbers, you should realize that comparing annual performance against a benchmark is using a statistically meaningless time period. Performance should be evaluated over much longer periods in order to provide meaningful analysis of risk-adjusted return. In fact, if you鈥檙e not investing with a significant time horizon (at least five to 10 years), it may be best not to invest at all. Markets go up and down over short periods of time; it鈥檚 those who stick it out for the long term, with minor tweaks along the way, who fare the best.

2. Around a major life event

Did you get married or divorced? Just聽? Perhaps you聽. Any major life event should be a reason to take a step back and look at how (and why) your money is invested.

3. With a change in employment

罢丑颈蝉听almost聽goes into No. 2 as a life event, but it鈥檚 important to break out as a separate item, because 鈥渃hange in employment鈥� can mean many things: a completely new job at a new workplace, a promotion, a spouse or family member leaving or joining the workforce. Make sure to look at how this affects your savings rate, when you think you鈥檒l retire and what employer benefits you鈥檒l gain or lose because of the change.

4. After a large cash inflow or outflow

Maybe you鈥檝e received an inheritance or a big bonus at work. Maybe you won the lottery! Any large cash inflow can change how you should be invested. And don鈥檛 forget outflows, since you may need to tap into your investments before retirement or achieving your goal. Whenever a lot of money goes into or out of your portfolio, review your goals and ensure your investments are still in line with your risk tolerance and time horizon.

5. When you create or update your comprehensive financial plan

Financial plans are a game-changer for most investors. While you or your advisor can invest your money with a general goal in mind, a comprehensive financial plan will take into account all your assets, all your liabilities and all your goals. A financial planner will then recommend how to invest your money based on all your information. Once created, most plans are updated anywhere from once a year up to every three to five years.

Keep in mind that these are simply the times you should聽look聽at your portfolio; that doesn鈥檛 mean you must take action. A major factor in success over the long haul is sticking to the plan you initially set. Those who invest on emotion and react to short-term events tend to buy high and sell low, the exact opposite of a successful strategy.聽聽who helps keep you accountable to these milestones, and you鈥檒l be well on your way to financial security and peace of mind.