Is It Time for Your Annual Portfolio Review?

The Greek philosopher Heraclitus once said, “The only constant in life is change.” His quotation rings true 2,500 years later: markets fluctuate, our lives change and our priorities shift. In this ever-changing world, an annual portfolio review is a smart way to check in with your long-term goals and revisit your budget and investment portfolio.

什么是an ? annual portfolio review?

Like an annual physical, your annual portfolio review can take place any time of the year; it’s meant to provide a look at your overall health – in this case, your financial health. Whether things seem “healthy” or not, a yearly look at your portfolio lets you reexamine your financial goals, whether it’s saving for a home, or for college and retirement.

You can check up on your financial health yourself, but working with a financial advisor can help you better understand market trends and how to maximize your investments for a richer future.

a是什么? financial advisor?

A financial advisor provides financial guidance to customers. Their services may include tax planning, wealth management, estate planning, and investment management. A financial advisor will also create and implement an investment strategy for you, monitor your portfolio, and rebalance your assets as needed.

Before working with a financial professional, be sure they are registered. You can research their status on BrokerCheck, a database maintained by the Financial Industry Regulatory Authority (美国金融业监管局).

What to expect at an annual portfolio review

When you meet with a financial advisor for an annual portfolio review, it’s good to ask whether you’re on track and to see how your portfolio is doing vs. the overall market, 比如S&P 500 for example. It’s also good to bring along your most recent financial documents, says Jane Krueger，慢性疲劳综合症¹ Financial Advisor at Patelco 信贷 Union. Here’s a list of what you might want to bring:

• Recent pay stubs (for both spouses, if applicable)
• 信贷 union and bank account statements
• The latest statements from your:
• 爱尔兰共和军s (Traditional, ROTH or educational)
• SEP, SAR-SEP or Simple 爱尔兰共和军s
• employer-sponsored retirement plans, such as a deferred profit-sharing plan (DPSP), RP, or TAXCAP
• previous employer-sponsored retirement plans, including 401(k) and HR-10 Keogh plans
• brokerage accounts
• 共同基金
• other investment accounts
• life insurance policies
• long term insurance policies
• Details about your current debts, including:
• loan balance
• current interest rate
• monthly minimum payment
• payoff date, if applicable
• Any other documents significant to your current or future financial wellbeing

Your investment plan and 生活事件 生活事件

Whether it’s your first meeting or your tenth, your annual portfolio review will follow a similar format. Your financial advisor will especially want to know if you’ve experienced any significant changes in your life, 如:

• Changed marital status
• Had or adopted a child
• Have a child starting or graduating college
• Started a new job
• Received a raise
• 招收ed in a 401K
• Opened an 爱尔兰共和军
• Started your own business
• Bought or sold a home
• Finished paying off an 汽车贷款
• 退休
• Applied for Social Security
• Disposed of financial assets
• Acquired or inherited assets
• Received an insurance settlement
• Created or changed your will or trust
• Have a family member who passed away or became disabled

Other topics to discuss at your annual portfolio review

In addition to major 生活事件, your financial advisor will probably want to cover the following topics with you:

• 你的目标. How have your financial goals changed in the past year? Whether you’re trying to buy a new home, paying for college, or estate planning, you’ll want to discuss your current goals with your advisor.
• Monthly expenses. “Your budget changes every year, so we’ll always review your monthly income and expenses,” says Krueger. This will not only keep your budget on track, but also help with your retirement planning.
• Retirement goals. 每年, you and your financial advisor will review your retirement plan, consider your fixed monthly expenses, current values and your risk tolerance, to make sure you’re still on track to meet your goals. Depending on your age, your advisor may also bring up topics like long-term care. “We usually start this discussion with clients in their 50s and 60s,” says Krueger. You can work with your advisor to decide whether self-insurance (where you invest money to be used for long-term care later in life) or insurance is the better option for you. “Self-insuring won’t be appropriate for everyone, particularly if you can’t afford it or if you don’t have heirs. If that’s the case, we’d recommend that you spend down your estate to cover those costs, instead.”
• 保险 policies. Your financial advisor may review your life insurance options, especially if your family is growing. They will also want to know if any existing policies are about to mature or expire.
• Your risk tolerance. Do market swings cause you anxiety? Are you approaching retirement? Sharing this information with your financial advisor can help you create an investment portfolio that suits your personality and overall goals.

It’s important to take the time to have a financial check-up once a year to make sure you’re on track with your finances. A financial advisor can help you refine your portfolio to prepare for the future and protect your loved ones if the unlikely happens.

Members of Patelco 信贷 Union have complimentary access to financial advisors through CUSO Financial Services, L.P. (CFS). They’re available to discuss your unique needs and create a plan that will help you achieve your financial goals.