If you are an investor, does the end of the quarter prompt you to think any differently? It should as you should review your investment accounts at least once per quarter. If you are like most investors, you do not check your account every day as you have bought stocks of companies that you believe in for the long term and bonds and mutual funds that you believe will continue to grow. Many investors fail to review their account and then don’t understand why their performance is so low.
Make it a point and put it on your calendar to review your investment accounts at the end of each quarter. If you manage your own affairs, review every position and determine if it is increasing in value and compare to what the market is doing. For the first quarter of 2010, the S&P 500 index increased by approximately 4.9%. Did each of your stocks or stock mutual funds increase by 4.9%. If not, evaluate why they did not and decide whether they deserve to remain in your portfolio. Most investors fail to move out of losing positions, and do not read about the companies performance. If you have mutual funds, evaluate how your mutual funds stack up against other mutual funds of the same type.
If you use an investment manager, review the account for overall performance. If you feel that you are underperforming, call the advisor and discuss it with him or her.
401-K participants should review their account and decide among the fund choices if they are invested in the best performing funds. If not, then move your money to the best performers. Approximately 70% of 401-K investors never change their allocation and then wonder why they consistently underperform.
This is serious business; it is your money; it is your retirement.
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. Investing in stocks, bonds, mutual funds and other investments involves risk, and may decline in value and are not insured by the FDIC or any other Federal government agency.