Question: How often should I check my portfolio and what should I be looking for?
--Elaine H., New Orleans
Answer: That’s a rarely asked question, and it’s a shame, because many people check the status of theireither too frequently or not frequently enough.
Let me explain...
For investors who are just getting going, early and quickin a portfolio can make seem exciting. And it’s natural to want to check the pulse of your portfolio every night (and some people do it many times a day). But such attention can actually be counter-productive, compelling you to act hastily if your portfolio has lost value for a few days or weeks.
Truth is, early investors should mostly own mutual funds ( ) and primarily avoid . That’s because researching and then tracking take a of time and experience, something many people lack. And if you do only own funds, you may as well resist the urge to check in daily or even weekly.and exchange-traded
You should see these as long-term. And if they’ll be in your portfolio for years to come, it’s irrelevant how they did today or yesterday. As a rule of thumb, check in on the portfolio monthly. That’s why brokerages and retirement plan sponsors tend to only monthly statements. Anything more would like staring at a tea kettle, waiting for it to boil.
This is when everything changes.
Here's what I mean...
Once you own a specific, you need to carve out at least once a week to see if there are any events impacting your .
Did a just-released quarterly earnings report indicate trouble ahead?
Did the company recently make a major acquisition that alter its growth prospects or levels?
These are the kinds ofto track, and it is also helpful to read all of a company’s SEC filings, as companies often seek to hide bad news in these mandatory filings (known as 8-Ks). Companies usually only issue press releases when there is good news to share.
If you have the time, and you consider yourself an active investor, a weekly portfolio check-up isn’t even enough. Experienced investors know that they need to spend at least a few minutes every morning and every evening tracking the key issues. Some folks even try to stay abreast of theirduring lunch time or other breaks.
And remember, just because you start checking up on your market can swing wildly from week to week, pushing your portfolio up or down in tandem. That doesn’t your are in trouble, but is a sign that you should be paying close attention.more frequently, it doesn’t you should be an active trader. The
One final thought: There isn’t a hard-and-fast rule about how often you need to monitor your blue chip such as IBM (NYSE: IBM) or GE (NYSE: GE), then it’s wiser to resist the urge to keep tracking their progress too frequently.. Understand that if you own mutual funds, ETFs or a handful of
Then again, as yourportfolio grows in complexity, you must spend the time to know your inside and out. If you don’t have the time or inclination to do so, then keep it simple with funds and only the most stable .
- Create a retirement savings goal
- Design an investment plan to reach it.
- Get a professional money manager to continually monitor and rebalance your portfolio
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