Time To Review Your Investments
It seems like it's always time to do something: time to go to work, time to have the car serviced, time to do the laundry, time to go to the dentist, time to drive the kids somewhere, time to make dinner. But, should you make time to review your investments? The answer is "Yes." Even though you may be bogged down by all of your daily obligations, you also need to make time to review your investments to maintain financial good health because not keeping track could result in costly consequences.
Check Your Returns
For many investors, a great time to examine their overall financial performance is just after the end of the year. With all of your account statements and financial figures compiled and on hand, you can get a clear picture of the status of your investments.
To see how your investments are doing, stack them up against similar investments. Using the information you receive periodically on your investments, compare total returns. An investment with an average total return that is close to or beats the overall market performance of comparable securities is considered a good performer.
If you are investing for your retirement, however, don't just look at each investment's individual performance. Also consider investments in different categories. For example, while your investment in money market securities may be performing well compared to other money market securities, it may be lagging behind stock investments.
Consider Your Investment Goals
Take the time to think about your investment goals. Have they changed? Have you experienced a major life change in the past yearsuch as a new child or a divorcethat may affect your investment objectives? You want to be sure that your investment strategy reflects your current investment goals.
Since one of your investment goals may be to save for retirement, consider whether your investment mix is still appropriate. If your investments are producing low returns, you may not be accumulating enough for a comfortable retirement. It may be time to change your mix of securities in order to increase your return potential.
Think Long Term
Keep in mind that when you have long-term investment goals, such as saving for retirement, you should have a long-term perspective. There always will be short-term differences in returns between securities and between investment categories. Invest in securities that you believe will provide the best overall results over the period until you retire.
Over the long term, a small difference in investment returns can make a big difference in your retirement savings. Consider whether you can afford to be less conservative with your retirement portfolio.
Take the Time Now
Life may be hectic now, but you'll probably have a lot of time on your hands once you retire. Then you will have time to travel, time to visit friends and family, time to relax and pursue hobbies. Take the time now to review your investments and make any necessary changes so that you will be able to enjoy the free time of retirement, instead of regretting missed opportunities.
The information above is provided as a service by #1 Insurance Quotes Life Disability Insurance. Protecting your personal and financial security is important to us. A #1 Insurance Quotes Life Disability Insurance Representative, working in conjunction with your other professional advisors, can be instrumental in helping you plan for the best financial future for you and your family. Please contact us if you have any questions or are in need of planning assistance.