Is it time for a portfolio checkup?
At Elevage Partners, we sometimes liken a client’s investing journey to a long sea voyage. Just as a captain must adjust the sails to shifting winds, you may need to make adjustments to your portfolio to ensure you stay on course as conditions change. With that in mind, here are some questions to consider as you assess the state of your portfolio.
Have Your Financial Goals Changed?
Think about what you want to accomplish with your investments. Whereas previous goals may have included saving up for your kids to go to college or to buy a home, your new goals may look a lot different. Perhaps you’re getting ready to retire or you’re eyeing a move to somewhere new. Maybe you used to focus on growing your wealth, but now you’re looking more at keeping what you have safe. Your goals will evolve as you move through various life stages, and it’s important that your investments evolve with them.
Have Your Circumstances Changed?
Life is full of surprises – new jobs, changes to your family, or unexpected events – and these can shake up your financial plans. These changes may signal that it’s time to adjust the way your portfolio is allocated. A new job might offer different ways to invest, or a change in your family could mean new financial priorities. Make sure your investments reflect your current circumstances while keeping an eye on your future aspirations.
Do You Still Feel the Same Way About Risk?
Your risk tolerance is a principal consideration for us at Elevage. The way you feel about investing risk can change based on your age, income, and responsibilities. Regularly re-evaluating your risk tolerance ensures your investments match your current comfort level. Such reviews are essential, as a mismatch between your risk profile and your portfolio can lead to discomfort or missed opportunities in your investment journey.
How Are Market Conditions Affecting Your Portfolio?
The investment landscape is constantly shifting, influenced by economic factors, political events, and emerging market trends. Rising interest rates, for example, may make certain fixed-income instruments more appealing to investors, while falling stock prices may present opportunities to acquire assets at discounts. Staying updated on these dynamics can help fine-tune your portfolio to capitalize on new opportunities while mitigating potential risks.
How Are Taxes Affecting Your Portfolio?
Tax rules and rates can change, and it’s important to know how these changes can impact your portfolio. Are your investments set up in a tax-efficient manner? Are you missing out on opportunities to better manage your tax burden? Do you have a plan for handling distributions from your tax-advantaged accounts? A proactive approach to tax planning can not only enhance your returns but also prevent any unwelcome surprises come tax season. Our team can take a look at your strategy and help identify areas for improvement.
Are You on Track to Meet Your Long-Term Objectives?
Periodically assessing the progress you’ve made toward your long-term goals is a critical aspect of your investment journey. This involves evaluating the current value and future growth potential of your investments. Check if your retirement savings are on course, or if your kids’ education funds are growing as planned. This reflection might reveal the need to adjust your contributions, explore different investment vehicles, or otherwise reevaluate your strategy.
We’re Here to Help
At Elevage Partners, we understand that your investment strategy should evolve as your life does. Regular reviews help ensure your portfolio remains aligned with your current financial goals, risk preferences, and life circumstances. These questions can guide your next portfolio check-up, helping you determine if any adjustments are necessary. Remember, sometimes only small adjustments are needed to keep you on course to reach your destination.
This material is intended for informational/educational purposes only and should not be construed as tax, legal, or investment advice, a solicitation, or a recommendation to buy or sell any security or investment product. Investments are subject to risk, including the loss of principal. Some investments are not suitable for all investors, and there is no guarantee that any investing goal will be met. Certain sections of this material may contain forward-looking statements. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Past performance is no guarantee of future results. Third-party links are provided to you as a courtesy. We make no representation as to the completeness or accuracy of information provided on these websites. Information on such sites, including third-party links contained within, should not be construed as an endorsement or adoption of any kind. Please consult with your financial professional and/or a legal or tax professional regarding your specific situation and before making any investing decisions. Asset Allocation does not guarantee a profit or protect against a loss in a declining market. It is a method used to help manage investment risk.