How Often Should you be Reviewing your Investments?

Couple Meeting with Financial Advisor

Part of a successful savings strategy is reviewing your investments on a regular basis to ensure your current investment strategy matches up with your goals. But how frequently should you be reviewing your investments?

“Generally speaking, the type of investment determines how frequently you should be looking at it,” says Leslie Hanson, Wealth & Retirement Advisor at Cambrian Credit Union. “For instance, if you’re investing in GICs then you’re really only just going to be paying attention to the maturity dates, as they are guaranteed,” she says. With any other type of investment portfolio, Hanson recommends looking at them a minimum of once a year up to several times a year, depending on your type of portfolio. “If you’re invested in mutual funds and have a properly diversified portfolio, it’s kind of ‘set it and forget it’, but be sure you don’t forget about it by reviewing it once a year,” Hanson says.

Part of reviewing your portfolio may be touching base with your advisor. If your portfolio is diversified, Hanson recommends reaching out to your advisor every one to two years. “Speaking to your advisor is a good idea, even if nothing has changed, because it allows them to give you a market update and review your investments to ensure your strategy is still working to meet your goals, both long and short term,” she says. It’s also a good idea to make an appointment with your advisor if you’ve experienced a major life event such as marriage, birth of a child or inheritance. This gives your advisor the opportunity to review your needs and goals, and ensure your strategy is working for you.

What happens if you review your portfolio and it’s not performing the way you were expecting it to? “There’s always going to be times when a portfolio will experience some volatility, but there is no need to panic if you’re properly diversified and invested according to your objectives and tolerance of risk,” Hanson says. If your portfolio has hit some bumps, Hanson recommends touching base with your advisor to see what’s going on. “Your advisor is usually very connected to what is happening in the marketplace so they can explain what is happening with your portfolio,” she says.

To meet with one of our advisors, call your local branch and ask for a referral.