Portfolio Review is among the single most important but often ignored aspect in managing one’s finances. The end of the year is a great time to do a review of all your finances including your investment portfolio and financial goals. But there is a method in doing this effectively. I would allude to this as a three step process :
Step 1 : Gather all the data points, this could relate to your cash flows, inflows, outflows, savings, investment, Health & Life insurances, including the goals posts that you had in mind to reach by the end of the year.
Step 2 : In a calm mind at a peaceful time,(I prefer early mornings say 5 to am, but pick your best time), review each aspect of your personal finance.. looking at it non judgmentally and ascertaining if you have achieved what you set out to do at the beginning of the year. Do you have course corrections that you would like to do on your investments ? Please make sure you are in a calm mind and are at your most objective mindset when you start this process..else you could let your emotions cloud your judgement.
Step 3 : Implement or set a plan to implement if any changes you need to make per your review in step 2.
“Feedback is the breakfast of Champions” – Ken Blanchard.
Review is nothing but Self feedback about how your monies have worked for you. Am sure you will get positive insights to maximize your personal financial outcomes in 2020. Even if you are no where near the goals of 2019, review it so that you would do better in 2020. Remember it is a new year to start and a new beginning for all of us to get better at what we want to do.
Merry Christmas & Happy New year to you and your loved ones.