Portfolio Review

With 2017 winding down, now is a great time to review your portfolio. Look at each of your holdings individually and ask yourself:

·        What reason(s) did I have for making this investment?

·        Are they still valid today?

·        Have there been any significant changes (good or bad) since my last review?

·        If I didn’t already own it, would I still want to invest in it today?

If you find yourself with some negative responses, you should consider trimming the offending positions from your portfolio. They may have been good investments at the time, but there may be better choices now.

Before selling, look at any penalties for doing so. Fees and taxes are worth considering. For example some mutual funds charge if the fund is not held long enough. It may be worth waiting that out. If you’ve made any gains in a taxable account, consider the tax implications. It may be worth waiting until January if you don’t want it to affect your 2017 taxes. Losses can be timed as well.

Once the portfolio has been narrowed down, it should be rebalanced as well. Make a list of all your holdings, and decide what percentage of your total portfolio you would like them to be. Compare that to actual percentages. Consider fixing any large discrepancies. 

Now your portfolio is ready for 2018!