Your Investment Review Checklist

This is a guide to help you assess whether you should be reviewing your investments. It does not replace the need for financial advice.

stethoscope-with-financial-graphYour goals

  • What are your investment goals? 
Think about whether you need growth or income, and how much.
  • Have you written your goals down?
 A good move is also to involve your partner or some other trusted person.
  • When will you need to start spending the money?
 In general, the longer your investment period, the greater risks you can afford to take.
  • How much can you afford to save? 
This will be a key driver in whether your money grows.

Your knowledge and experience

  • How experienced are you with investing money? 
Inexperience can lead to mistakes with investing.
  • How well do you understand investing money?
 If you don't understand your investments, should you invest?
  • What educational resources do you regularly consult to improve your knowledge? You must keep your knowledge up to date (even if you use an adviser).

Risk

  • How much risk are you prepared to take?
 This will determine your expectations of returns and fluctuation in your assets.
  • How much risk do you need to take?
 This question may make you reassess your goals or expectations.
  • How much loss could you bear before you became worried? 
This is particularly important as you get closer to needing to access your funds.

Diversification

  • Do you have a schedule of assets? 
This is a vital tool to help you to analyse your assets.
  • What is the spread of investments across different types of assets? If your assets are highly concentrated this generally increases risk.
  • How do you decide in which areas to invest your assets? How do you make investment decisions?
  • When was the last time you rebalanced your investments? 
You need to ensure that your portfolio does not become riskier over time.

Market timing

  • How do you decide when to enter (and exit) the investment market?

Costs

  • Do you understand the costs of your investments? 
Look at product charges, investment charges, tax and adviser charges.

Tax

  • Do you understand the tax on your investments? Tax will likely reduce your investment returns.

Reviews

  • When was the last time you reviewed your investments? If this was more than a year ago, you have probably left it too long.
  • Last updated on .

The information on this site is intended as a guide only. The information is of a general nature and does not and cannot ever constitute personal advice.
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