Many of us, when switching jobs, tend to roll over a 401K into an IRA, and then let it be. Now is a great time to really look at those old IRAs and see if the portfolio you set up back in your old job is still the right mix for your current needs and goals.
Even if you have some newer investments and portfolios, your personal life (family, employment) and what is happening in the world (inflation, fluctuating stock markets) can rapidly change how financially conservative you want to be.
At the end of the year, we tend to both look back over the previous year to see what we’ve done, and look forward and start planning for the new year. So, whether you are decades from retiring, or only a few years away, this is a great time to review and rebalance your retirement portfolio.
Reviewing your portfolio means taking a closer look at each of your investments to determine how they’re performing. You’ll want to consider factors like the rate of return, the level of risk you’re comfortable with, and whether the investment still aligns with your overall investment strategy.
Rebalancing your portfolio means adjusting the mix of investments in order to maintain your desired level of risk and return. For example, if your stocks have performed particularly well over the past year, you may need to sell some of them and use the profits to invest in other areas, like bonds or real estate.
By regularly reviewing and rebalancing your investment portfolio, you’ll be able to stay on top of your finances and ensure that you’re making the most of your investments.
Whether you’re a seasoned investor or just starting out, taking the time to manage your portfolio can help you achieve your financial goals over the long term.
If you work with a financial advisor, follow their recommended review schedule. They can provide insights based on their expertise and knowledge of your financial situation. If you’ve been doing this all by yourself and want some help, give me a call. I can show you how best to make your investments work for your specific retirement goals.