Portfolio Reviews

Does Your Portfolio Address Your Financial Goals?

An investment portfolio is not a static plan. As your needs change, your portfolio may no longer be making the grade. That's why you should have a periodic review with your wealth advisor as part of a robust portfolio management plan. Our advisors will walk you through a simple three-step methodology to determine if your portfolio is still helping you address your financial goals.

1. Review the Mix of Assets

Your age and your risk tolerance will help to determine the right asset allocation for you. Younger investors are typically more risk-tolerant, meaning that their portfolios will be at or near 100% stocks. As you age and approach retirement, you will want to become more risk-averse with a mix of stocks, bonds and cash holdings.

2. Rebalance the Portfolio

Over time, your investment plan can drift off course from the original strategy. If you and your wealth advisor determined that a 75% / 25% allocation of stocks to bonds is right for you, but now it looks more like 81% / 19%, it may be time to make adjustments. A good rule of thumb is to rebalance if your portfolio changes in any category by more than 5%.

3. Assess the Performance

When reviewing your portfolio, it is time to give a pass or fail grade to your holdings. If a stock is underperforming, put your money into another investment.

At Russell Wealth Management, we offer complimentary portfolio reviews for our clients to keep their financial plans on track. Contact us today to schedule a time for a portfolio review.

Asset allocation does not ensure a profit or protect against a loss. Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss. All investing involves risk including the possible loss of principal. No strategy assures success or protects against loss.