The time for my mid-year investment portfolio update is signaled by the arrival of a beautiful red dragonfly at our pool. Last week he arrived; right on time, and as gorgeous as ever. What are some things to include in your bi-annual portfolio update?
- How does your portfolio compare to both January of this year and one year ago? Stocks have continued their uptrend until recently, so you probably have some good gains if you have been invested in the stock markets.
- Do you need to rebalance your portfolio to increase or reduce the amount in any one asset class, such as stocks or bonds? This is often the case when one asset class has had a big move, such as the one we have seen in the stock markets.
- Do you have assets, such as long term bonds, that are subject to interest rate risk? (Please read my blog or watch my video if you are not familiar with this.) At a minimum, be aware that this risk exists and know if you have exposure to it so you can limit your risk.
- Have you added the amount of capital to your investment accounts that you had planned to add by mid- year? If not, take a look at your monthly cash flow to see where you can improve it by increasing your income, decreasing your spending, or both, for a real impact. Better cash flow allows you to put aside more money to grow.
- Do you have investments that now appear clearly overvalued? If so, is it time to consider selling them?
- How much is your investment return thus far for the year? Remember, what we focus on grows. Does your portfolio need some TLC?
You have over 5 months left to make a difference in growing your money before year end. Take time now to make sure you are on track to reach your financial goals for 2011. And keep your eyes open for one of those beautiful, bright red dragon flies that signal “give your money some attention”.