Investment Strategy: Where You Are Now vs. Where You're Headed

Terri Spath |

From business owners to athletes to running a family, many women are striving for a goal or certain level of performance and assessing where they are and where they want to be. Regularly checking in will help you decide if you are effectively using all the opportunities and resources available for you.

It may seem OK to overshoot a goal, but if your time, energy and other resources are used ineffectively – too inefficient, too costly, not the right kind of risk – it may undermine the long-term prospects of achieving your goals. As well, you want to avoid undershooting a goal because it may cause more problems for you like stress or frustration.

An easy analysis can give you a snapshot of your current situation and help you decide the adjustments you’d like to make to get back on track for any goal.

Determine Where You’re Headed

For a long-term strategy to have the most potential for success, it should be based on an assessment of your needs, priorities, preferences. Financial goals, like planning for lifetime income in retirement, should account for your actual needs, economic factors, life’s uncertainties and general risk. When you put these factors together, you should end up with a target to aim for.

Are You Where You Want to Be?

When you first create your investment strategy, it should be adjusted to your needs. But over time, things will change. For example, a change in the market may shift your allocation of assets out of balance, potentially causing a mismatch of risk and return orientation. A change in priorities may mean you’re assuming too much or too little risk, throwing you off target. While this can be addressed through regular portfolio rebalancing, a regular analysis is another way to see if your portfolio is still leading you toward your goals.

Portfolio analysis helps you determine if the resources you’re using to pursue your investment goals are being used effectively across your strategy. When performing your analysis, you may want to consider:

  • Are your assets allocated in a way that supports your investment objectives and risk tolerance?
  • Is your portfolio well diversified across a number of types of global investment types?
  • Do you have a clear and repeatable process for deciding when to buy and when to sell?
  • Does your fixed income allocation have the right type of bonds to create income and reduce overall risk?
  • Does your portfolio minimize management and transaction costs?
  • Does your portfolio’s risk profile still reflect your current risk capacity and tolerance?

No matter if you’re working with a financial professional or doing it yourself, a regular analysis should be a part of your long-term investment strategy. Through regular review, you’ll be better informed about where you are in relation to where you want to go. Give us a call if you’d like to review your portfolio, and let’s see if you’re heading in the right direction. We understand.

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This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. Neither the information presented nor any opinion expressed constitutes a representation by us of a specific investment or the purchase or sale of any securities. Asset allocation and diversification do not ensure a profit or protect against loss in declining markets. This material was developed and produced by Zuma Wealth LLC to provide information on a topic that may be of interest. Copyright 2023.