The Finance Blogger


Year End Investment Review

The following are the steps you need to consider as part of your Year End Investment Review.

Perform a financial self exam

Once or twice a year perform a year end investment review and evaluate your current goals. Identify new goals, assess your tolerance for risk and make sure that there’s an alignment between the two.

Review your approach

There will be a short-term fluctuations in the market, for example the current market is growing very strong. However, investors should focus on the long-term to ensure they meet their goals to meet their objectives. You may want to look at whether they have sufficient cash to meet unexpected or upcoming events. Will there be a risk of a shortfall, do you have sufficient insurance coverage to meet your family’s needs and do you have the right mix of stocks bonds and cash to meet your objectives.

Write yourself a check

Complete your contribution to your Retirement savings plan, your tax-free savings account. Determine if you need to the adjust your portfolio income to provide for sufficient income for the following year.

Do an inventory check

A diverse investment portfolio is the best way to manage your overall risk. Complete an inventory check to review that you have the right mix of stocks bonds and cash investments. As well as across different asset classes investment grade, international and asset classes . If you are over exposed in one area you may need to make some adjustments to keep to your strategy.

Prepare for choppier waters

Are you prepared 5%, 10% or more adjustments in the market. Volatility is a normal experience in the market. Do you have sufficient cash to invest or take advantage of these pullbacks? What will be the impact on your existing investment? Evaluate your exposure risk as appropriate.

Position for the next phase of growth

Interest rates have been forecasted to stay low for the last couple years. Currently they are expected to begin increasing in 2017, however it is anyone’s guess. When they do rise, equities will be impacted. Do you have the right mix of equities, bonds and cash to take a bandage of rising interest-rate?

Trim your heavyweights from the previous phase

Some of your investments may have risen significantly and are now over weight with respect to your other investments. This might be the time to sell and take advantage of profit taking to invest in other opportunities.

These are areas that consumers should consider when evaluating and completing an annual investment review. Work with your investment visor to come up with a strategy that meets your needs, and you’re investing style.


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