Submitted by nsscadmin on
With less then three weeks remaining in 2022 it will soon be time to flip the calendar over to 2023. At the end of the year, many people take the time to review their finances. This could be especially prudent and important after 2022 due to heightened inflation and financial turmoil. If you’re thinking about doing a financial review of your investments heading into 2023 here are a few things you may want to look at.
Have you investing goals changed?
What were you investing for in 2022? Retirement? Your child’s future education? For income? Are those still your goals for 2023? Are there new goals you would like to add? It’s very hard to invest if you don’t know where you’re going.
Is your time horizon for your investments still the same? Are you on track for that time horizon?
If your investments took a hit in 2022, did this affect your time horizon at all? For example, if you’re investing for your retirement and you had planned to retire in 10 years, is that still possible? Address where you are with your investments and where you want to be according to your time horizon to make sure you’re still on track.
Has your life changed in any major way in 2022?
Whenever you go through a major life change you should examine how it could affect your investing plan. In 2022 did you lose your job, or change jobs which affected your income? Did you have another child? Did you move and take on a mortgage? Major life changes like this can affect your finances in extreme ways and should be taken into account when planning your investments.
Is your portfolio the right mix?
2022 delivered a shock to the system for many investors. Does the change in the markets mean you should look at changing the investment mix in your portfolio? Make a meeting with your adviser to discuss if any changes need to be made, or if you’re a DIY investor, examine if the mix is currently the right one for the financial environment.
Is your risk level right for you?
Are you taking on too much risk in our current financial environment? With inflation soaring, your day-to-day expenses are probably much higher than they were in January 2022. Make sure you’re not overextending yourself with too much investment risk.