Your year-end investment checklist

  A man takes notes at a desk and uses a calculator.

With year-end quickly approaching, your "to do" list is likely to grow. Make sure a portfolio review is part of your list. Consider the following checklist as a guide.

  1. Perform a self-assessment
    Start by reviewing your financial goals. Have they changed? From there, revisit your comfort level with risk (fluctuations in your investment values). Identify the balance that’s right for your situation.
     
  2. Account for the unexpected
    Assess your cash position to ensure you have enough for unexpected or emergency events. It’s also a good idea to review your current insurance coverage to ensure it meets your family’s needs.
     
  3. Write yourself a cheque
    It’s important to manage debt while saving enough to reach your goals. A systematic savings strategy is key for investment goals such as preparing for retirement. Check your monthly or yearly savings so that it’s still in line with your future needs. Make your full contribution to your RRSP or a spousal RRSP for 2019 and/or contribute to a Tax-Free Savings Account (TFSA) before year end.
     
  4. Regain your balance
    Fluctuations in the market can cause your portfolio to drift from your intended mix of stocks and bonds. Periodic rebalancing can help keep your portfolio on track with your long-term strategy while helping to keep it aligned with your risk preferences and investment goals.
     
  5. Reinforce your portfolio’s foundation
    A year-end portfolio review can help identify gaps and areas that need attention, including ways to reduce risks or take advantage of market opportunities. We doubt we’ve seen the end of the volatility, so enhancing your diversification can help your portfolio weather short-term swings although, it does not guarantee a profit or protect against loss.

The end of the year can be busy – but an ideal time to review your financial situation, the alignment between your portfolio and your goals, and opportunities to adjust or capitalize on market fluctuations. Your Edward Jones advisor can work with you to identify actions you can take to help you prepare for the years ahead.