Submitted by nsscadmin on
The calendar will be flipping over to 2025 in a few weeks. The end of the year is often a good time to do a review of your investments to see where you are and to stay on track to reach your investment goals. If you’re planning an end of year investments review here are a few things you may want to consider looking at.
Are your investment goals still the same?
Before you begin investing you should identify and set your investment goals. They could include things like: investing for retirement, a downpayment for a house, or short-term goals like a regular revenue stream or vacation savings. Are the goals you previously set still valid? Are there new goals you would like to add to your list and begin planning for?
Has your time horizon changed?
We did a quick review of time horizon last week. Your time horizon is when you’re going to need the money you’ve invested. It is always a good idea to review your time horizon at least once a year or when major life events occur to see if any adjustments are necessary and if your current investment returns are still inline with your time horizon goal.
Did any major life events in 2024 change your investing outlook?
Whenever you go through a major life event it can affect your investing plan. This can include things like: a job loss or change, buying a home, having a child, getting married or going through a divorce. Any event like this can have a major impact on your finances and financial outlook and as a result could change how you should be investing.
Is your risk tolerance still the same?
Risk is a major part of investing. There is risk involved in every investment you make. Are you taking on too much risk in our current financial environment? Have your expenses changed in 2024, leaving you with less money to invest? Make sure you’re not overextending yourself and taking on too much investment risk.