Quick Guide to Investing: Monitoring Your Investment

Thoughtful investing is a marathon, not a sprint. Sometimes, even the most prudent investment decisions don’t deliver the most impressive short-term results. So stay the course and keep focused on your long-term goals.

Monitoring your portfolio should be, at minimum, an annual occurrence and consist of:

  • Tracking the overall performance of your portfolio in moving you closer to your investment goals.
  • Assessing the performance of individual asset classes and investments compared to their peer group.
  • Reviewing your goals and allocations to determine if any changes are needed.

From time to time, your needs and/or personal situation may change. That’s why it’s vital you continually monitor and adjust your plan along with your underlying investments whenever circumstances dictate.

5 common reasons to modify your investments

  1. New goals (e.g., saving for a new child or grandchild’s education)
  2. Achieved goals (e.g., paying off a mortgage or tuition)
  3. Rebalancing (bringing your portfolio back in line with target allocations)
  4. Unexpected windfalls or expenses (e.g., inheritances, disability, etc.)
  5. Life changes (e.g., death of a spouse, divorce)

Thoughtfully rebalance

Over time, as some investments perform better than others, your target allocation will drift resulting in your portfolio taking on too much or too little risk for your goals. Maybe over the period of a few years, your stocks have performed so much better than your bonds that your original 60/40 stocks to bonds portfolio is now a 75/25 stocks to bonds portfolio thanks to the growing value of the stocks.

When this occurs, your portfolio should be rebalanced. But since it requires the buying and selling of investments (in the previous example selling some stocks and buying more bonds) rebalancing needs to be done thoughtfully to minimize your costs and potential taxes.

SunTrust SummitView, our goals-based planning approach, makes it easy to keep track of your investments and monitor your progress towards your goals.

Sometimes it’s important to see if your portfolio’s asset allocation has the right balance of assets that have more risk (and potential reward) such as stocks and those that have less risk, such as bonds. For more information, read Staying on Course, or talk to a SunTrust Investment Services advisor by calling 877.962.9032.

 

877.962.9032
Contact the STIS Client Advisory Center

Find a SunTrust Location

Go

Investing & Retirement Resource Center

  • Will Caring for Aging Parents Threaten Your Retirement?

    The financial obligations associated with caring for an aging parent can often coincide with other priorities. Of course you want to help out when possible; just don’t jeopardize your own future.

  • A Fresh Perspective on Retirement Income

    Faced with the potential to live 30+ years in retirement, the traditional approach to retirement income may no longer make sense.

  • Big Life Change? Three Retirement Rules of Thumb to Follow

    Big life changes can dramatically change how much money you’re able to save each month. Keep in mind these rules of thumb when life shakes things up.

  • Staying on Track with Your Retirement Investments

    Investing for your retirement over the long term takes a little knowledge and discipline. Though there can be no guarantee that any investment strategy will be successful—and all investing involves risk—there are ways to help yourself build your retirement cushion.

  • Donor Advised Funds: Family Giving Made Easy

    In 2014, Americans gave more than $358 billion to charity with nearly three-quarters of that amount coming directly from individuals. And while much of these donations come in the form of direct cash gifts, more and more individuals are turning to planned.