Monday, February 20, 2012
PORTFOLIO CHECKUP: STEP ONE
1:31 PM | 
Posted by
pensionfinancialservices |
Read anything interesting lately?
As we noted previously, an exceedingly helpful 2012 piece in Fidelity Investor’s Publications on “evaluating your investments and performance” does, in a four-step guide, provide valuable insights for those seeking to remain confident in--and perhaps maximize--their portfolios. We’re shining the spotlight this week on Step One of the Four-step strategy (see Blog Post –February 16 for the list).
Step One: Assess overall performance
“When evaluating performance, context is key. You need to know two things—whether your portfolio is on pace to meet your goals, and whether it has performed as well as comparable investments over a reasonable period of time.
“First, check your assumptions about the returns you would need to generate to reach your goals. If your portfolio’s performance has fallen short of your assumptions over a long period of time or if you find you cannot stomach the volatility of your investment mix, you may need to revise your strategy, perhaps by saving more or revisiting your investment allocation.
“You also want to see if your investments have performed as well as they should have. Your first instinct may be to look at the bottom line---we all want to see the value of our investments rise. But what may be more important is that your investments perform in line with your strategy. For instance, an aggressive investor looking for growth should expect to see periods of large gains and losses aligned with the performance of the stock markets, while a more conservative investor would want to see less volatility.”
Whatever investor you are—aggressive or conservative—we’re here at Pension ParametersFinancial Services to prudently guide you.
Until the next post, when we take up asset allocation.
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