Three reasons your investment portfolio may need a checkup

A man and a woman sit together looking at a computer screen on a coffee table.

Investment portfolios generally require periodic maintenance — especially in volatile times. Is yours due for a checkup? Here are some steps to consider.

1. Realign portfolio drift

Market volatility may mean that the mix of stocks, bonds, and other assets you own is no longer aligned with your investment goals. Consider resetting your asset allocation to match your plan.

2. Use volatility to your advantage

Consider rebalancing your portfolio by selling some investments that have performed very well and buying others that may offer better opportunities. This approach can help you buy low and sell high. It also may help you avoid making emotionally driven investment choices. When the market headlines are telling you to sell, it can be tempting to make rash decisions. Regular portfolio maintenance and periodic rebalancing may help you avoid potentially costly mistakes.

3. Adjust for changes in your life

Be sure to periodically check your investment goals, time horizon, and tolerance for market risk when life events impact how you want to invest going forward. Such events may include getting married, having a child, changing jobs, a child going to college, or selling a business.

Regularly checking your investments to align portfolio drift, reviewing your asset allocation, and adjusting for life’s changes may help increase your chances of achieving your investment goals.

This information is provided for educational and illustrative purposes only.

Asset allocation, diversification, and periodic investment plans, such as dollar cost averaging, are investment methods used to help manage risk. They do not guarantee investment returns or eliminate risk of loss including in a declining market.