Investing can be an emotional rollercoaster. With the 24/7 news cycle and constant updates on market performance, it’s easy to get swept up in the day-to-day noise. As a CERTIFIED FINANCIAL PLANNER™ serving Dallas, TX, I often remind my clients that making decisions based on short-term market fluctuations can derail even the most carefully designed financial plan.
A client recently asked me an excellent question: “How often should I review my portfolio?” This is a crucial topic for every investor, and the answer depends on striking a balance between staying informed and not overreacting. Let’s dive in.
Aim for One or Two Reviews Per Year
A good rule of thumb for most investors is to review your portfolio once or twice a year. The first review, often at the start of the year, should focus on assessing your investments’ performance over the previous year and aligning your strategy with your goals for the year ahead. A mid-year check-in can help ensure you’re on track without overanalyzing market movements.
For Dallas-based investors, this approach also allows you to account for local economic factors, such as the city’s growing real estate market or its rapidly evolving business landscape. By timing your reviews, you can evaluate how your portfolio aligns with broader trends that may impact your financial goals.
Revisit During Major Life Events
While annual or biannual reviews are sufficient for most, certain life events warrant a closer look at your financial plan and investments. These might include:
- A large, unexpected expense, such as home repairs or medical bills.
- A significant purchase, like a new car or property in Dallas’ competitive housing market.
- A career change or promotion that alters your income.
- Retirement planning milestones or sending children off to college.
These events can shift your financial priorities, and it’s crucial to ensure your investments align with your changing circumstances.
Scheduling Reviews Helps You Tune Out Market Noise
The financial markets are unpredictable and often volatile. By sticking to a consistent review schedule, you can avoid the temptation to make rash decisions based on short-term market fluctuations.
For example, during a period of market turbulence, many investors panic and sell assets prematurely, locking in losses rather than staying the course. A disciplined approach, with fewer but more focused check-ins, enables you to maintain perspective and focus on long-term goals.
For clients in Dallas, this can mean ignoring noise around local industries, such as energy or technology, and focusing instead on broader trends that align with your investment strategy.
The Value of a Financial Accountability Partner
At Caviness Wealth Management, we believe that investing is a marathon, not a sprint. Our team is here to help you build a custom review schedule tailored to your unique needs and goals. Whether you’re navigating a major life event or simply need reassurance during market downturns, we can provide the guidance and accountability you need. But that’s not all. Learn more of the benefits of working with a financial advisor here in my recent YouTube video.
For our Dallas clients, this means we’re not just financial advisors—we’re partners in your success. We understand the challenges of staying disciplined no matter where you are or what life stage you’re in.
Let’s Cut Out the Noise
If you’re ready to take a more structured approach to reviewing your investments and cutting through the market noise, we’d love to help. Contact us today to schedule a consultation and start building a plan that works for you. Together, we can focus on what truly matters: helping your money work for you, so you can enjoy the life you’ve worked so hard to build.
