How to Perform a Mid-Year Portfolio Review in 5 Simple Steps (with Infographic)

 Lauren Wilson

June 14, 2019

Whether you are investing as an individual or part of an investment club, a portfolio review is a great tool to check-in and ensure you are on track to reach your investment goals. While many investors choose an annual review period, a mid-year provides advantages, enabling you to potentially address needed changes ahead of any significant negative impact. While the idea of adding an additional review may seem daunting, it doesn’t need to be. Focus on what you can control and stick to the simple changes that add the most value.

Here are sharing 5 simple steps to perform a mid-year portfolio review. For more information, scroll down below the infographic.

5 Simple Steps to Perform a Mid-Year Portfolio Review (Infographic):

5 Simple Steps to Perform a Mid-Year Portfolio Review:

1. Review Your Portfolios Progress Against Goals

First and foremost it is important to benchmark your progress towards your investment goals. Market and economic conditions such as volatility or changing interest rates may have taken your investments off course and this review provides an opportunity to double click on some of the underlying reasons, and evaluate the risk they pose in the future.

2. Incorporate Life Events into your Investment Goals

In the last period did you experience a significant life event, such as a change in job, marriage, birth or death in the family? If so, you may need to reassess your investing goals themselves. Are your time horizon and financial contributions and targets still appropriate? Perhaps you need to adjust your risk profile. Or you may need to look at other investment options like education savings plans such as 529 plans.

3. Consider Tax implications and Opportunities

A mid-year check-in can also be used as an education moment. Looking for and understanding any changes to tax rules now provides lead time to adjust your plan before year-end. The tax implications of adjusting your portfolio could deter you from rebalancing in this period, depending on your position against your goals. When it comes to tax, some may wish to contact a tax professional to discuss their individual situation.

4. Review Your Allocation

After you understand your progress towards your goals and tax opportunities, you can turn to your actual portfolio. This review does not need to be in-depth if significant challenges or opportunities are not identified in the first steps. The recommendation is to start at the overall portfolio level and drive own to the sector or individual holdings if you find problem areas to address. As the proverb says: “If it ain't broke, don't fix it."

5. Update and Execute Your Plan

Whether it is to hold your position or adjust course, execute your plan and you’ll be better prepared for the next 6 months ahead.


The Takeaway

Reviewing your portfolio is important to help you achieve your financial goals. As you grow older, life events and personal factors may change your ability and comfort to tolerate risk so regardless of market conditions, your strategy will need to be adjusted as time goes on. When and how do you review your portfolio? We’d love to hear!  

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