Searches For Best Investments 2022 Have Seen A 3,450% Increase: When Is The Perfect Time To Review Your Investments
Investing can be an effective way to build up wealth. As we navigate the post-pandemic world, people are feeling more confident investing money, with Google recently seeing a massive 3,450% increase in searches for “best investments 2022.”
Knowing how to take care of your investments so they flourish is critical. The team at private and commercial banking firm Arbuthnot Latham have provided a helpful guide on when and how often to review your investments so you can get the most out of them.
Consistently checking your investments can potentially do more harm than good. Unless you’re a day trader, looking at your assets consistently can be distracting but knowing when the right time to check-in is valuable.
When To Review Your Investment Portfolio
You should review your investment portfolio when your personal circumstances change, so your strategies align with new priorities; fundamental life changes include:
Changes to your family structure
- Welcoming new children or grandchildren
- Marriage or divorce
- Poor health
- Death
Changes to your working environment
- Reducing or increasing hours
- Stopping working/retirement
- Selling a business
Changes to your home environment
- Up/downsizing
- Empty nest
- Adult children returning to the family home
- New caring responsibilities
Changes to your Investment Management team
- Or your broader banking or wealth planning team
Market Volatility
Short-term rises and declines often correct themselves within days; however, you may welcome a little reassurance when markets are volatile.
Your Investment Manager’s job is to monitor markets, underlying fundamentals, industry trends, and opportunities. They can give you the peace of mind you need or change your underlying investments where options are presented.
What Is Discussed At An Annual Investment Review
It’s vital to review your investments annually even if your finances have not changed; critical topics discussed include:
- Review objectives to ensure your investment strategy aligns with your overall goals.
- Review of your investment performance against a suitable benchmark. Whether the value of your investments has increased or decreased, a benchmark will help you understand how similar investments performed over the same period.
- Tax efficiency ensures you invest in a tax-efficient manner and take advantage of annual allowances, including ISA limits.
- Longer-term plans to consider include any future changes to your circumstances or income requirements.
- Tactical asset allocation – your Investment Manager can explain any changes to asset class weights.
- Any areas of interest or concern.
View the full blog post here: How often should I review my investments? | Arbuthnot Latham
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