Everybody should get in the habit of evaluating their portfolio at least once a quarter. Left unmonitored for a long enough period of time, your desired weightings can become unbalanced. For example, in one portfolio, I limit my positions to no more than a 5% weighting. After not checking the portfolio for three months, my positions in a gold ETF and Amazon ballooned to 10% each.
We’ve spent time learning about various investment strategies for retirement based on Modern Portfolio Theory. Now let’s spend time implementing what we’ve learned. After all, learning without taking action is not very useful.
To guide you on how to give your portfolio an investment checkup, let’s go through it together using my own example. I’ll show you what to think and what to do in seven steps. We’re at record highs in the stock and bond market, so now is a great time to do a deep dive analysis.