When Markets Are Up…
It feels good to open an investment statement and see the numbers moving in the right direction. After periods of market uncertainty, seeing portfolio values rise can provide a welcome sense of progress.
But when markets are performing well, there can be value in looking beyond the return itself.
A higher investment balance doesn’t necessarily mean something needs to change. It can, however, be a good reason to revisit what those investments are ultimately there to support.
Are You Closer to Retirement?
If retirement is approaching, your timeline may look different than it did the last time your financial plan was reviewed. A stronger portfolio value may be one piece of determining when you can retire, how much you may be able to spend and where your retirement income will come from.
Rather than focusing only on how much your investments have grown, this can be an opportunity to update the numbers and see how your retirement picture has changed.
Have Your Goals Changed?
Financial plans aren’t static. A renovation, cottage purchase, support for children or grandchildren, travel plans or a change in career can all affect what you want your money to accomplish.
When investment values have increased, revisiting those goals can provide a clearer understanding of what may now be possible and what still requires planning.
Does Your Investment Mix Still Reflect Where You Are Today?
As markets move, the balance of investments within a portfolio can change. At the same time, your own circumstances may have changed.
Your timeline, income needs, comfort with market fluctuations and financial priorities are all worth revisiting periodically. The investment strategy that made sense several years ago should still make sense for the person you are today.
What About the Rest of Your Financial Picture?
Investments are important, but they are only one part of a financial plan.
Debt, cash flow, taxes, insurance, estate planning and upcoming expenses can all influence whether you’re making progress toward your goals. Looking at these areas together can provide a much more meaningful picture than investment performance alone.
Look Beyond the Return
When markets are up, it’s natural to focus on the growth you’ve seen. But one of the more useful questions may be what that growth means within your overall financial plan.
You may find you’re right where you expected to be. You may have more flexibility than you realized. Or there may be areas of your plan that deserve another look.
Wondering what recent market growth means for your own plans?
Tell us what's on your mind and we'll start there.
Comments