The Importance of Reviewing and Revisiting Your Investment Objectives in 2023

It’s the new year! Aside from resetting your bedroom and workstation at home, make sure that you also revisit your old investment and financial objectives. It’s important to regularly check your investment objectives because your financial situation and goals may change over time. For example, you may receive a raise at work, pay off a debt, or have a change in your personal circumstances that affects your financial goals. By revisiting your investment objectives regularly, you can ensure that your investments are still aligned with your financial goals and risk tolerance.

Additionally, the financial markets are constantly changing, and the investments that were right for you at one point may not be the best fit for you anymore. By regularly reviewing your investment objectives, you can make any necessary adjustments to your portfolio to ensure it is still suitable for your current financial situation and goals.

Finally, regularly checking your investment objectives can help you stay on track to achieve your financial goals. By periodically reviewing your investments and making any necessary changes, you can ensure that you are taking the steps needed to reach your financial objectives.
Reevaluating your investment goals on a frequent basis is a smart idea, especially if your financial situation or personal aspirations have changed. Here are a few actions you may do to review your 2019 investment goals.

Review your current financial situation

Look at your current income, expenses, debts, and savings to get a sense of your financial position.
There are a few steps you can follow to effectively review your current financial situation:

1. Gather financial documents: Collect all your financial documents, including your bank statements, credit card statements, investment account statements, pay stubs, and any other relevant documents.
2. Make a list of your income and expenses: Create a list of all your sources of income, including your salary, any rental income, and any other sources of income. Then, make a list of all your expenses, including your bills, debt payments, and any other regular expenses.
3. Calculate your net worth: To calculate your net worth, add up the total value of your assets (including your savings, investments, and any other assets you own) and subtract your liabilities (including your debts). This will give you an idea of your financial position.
4. Review your budget: Look at your income and expenses and see if you are spending more than you are earning. If you are, you may need to make some changes to your budget in order to improve your financial situation.
5. Consider seeking professional advice: If you are having trouble understanding your financial situation or are not sure what steps to take to improve it, you may want to consider seeking the advice of a financial professional. A financial planner or advisor can help you understand your options and plan to reach your financial goals.

Determine your financial goals

Think about what you want to achieve financially in the short-term and long-term. Do you want to save for a down payment on a house, pay off debt, or build up your retirement savings?
Determining your financial goals is an important step in managing your finances and planning to achieve your objectives. Here are a few steps you can follow to determine your financial goals:

1. Think about your short-term and long-term goals: Consider what you want to achieve in the short-term (e.g., within the next year) and the long-term (e.g., over the next 5-10 years). Your goals could include things like paying off debt, saving for a down payment on a house, or building up your retirement savings.
2. Consider your values and priorities: Think about what is most important to you and how your financial goals align with your values and priorities. For example, if environmental sustainability is a priority for you, you may want to consider investing in environmentally friendly companies.
3. Set specific, measurable, achievable, relevant, and time-bound (SMART) goals: Make sure your goals are specific, measurable, achievable, relevant, and time-bound. This will help you create a clear plan for achieving your objectives and make it easier to track your progress.
4. Make a plan: Once you have identified your financial goals, create a plan to achieve them. This could involve setting up a budget, making changes to your spending habits, or making investments to help you reach your objectives.

Remember, your financial goals may change over time, so it’s important to revisit them regularly and make any necessary adjustments to your plan.

Assess your risk tolerance

Consider how much risk you are willing to take to achieve your financial goals. Are you comfortable with the possibility of losing some of your investment in exchange for the potential for higher returns, or would you prefer a more conservative approach?

Review your current investments

Look at the investments you currently hold and assess whether they align with your financial goals and risk tolerance.

Here are a few steps you can follow to review your current mutual fund investments:

1. Gather information about your mutual fund investments: Make a list of all your mutual fund investments, including the fund name, the amount you have invested, and the fund’s performance. You can find this information on your investment account statements or by contacting your investment company.
2. Review the fund’s performance: Look at the performance of your mutual fund investments over various time periods, such as the past year, three years, and five years. This will give you an idea of how your investments have performed and whether they are meeting your expectations.
3. Compare the fund’s performance to its benchmark: Look at how the mutual fund’s performance compares to its benchmark, which is the index or benchmark that the fund is intended to track. If the fund is underperforming its benchmark, it may not be meeting your expectations.
4. Consider the fund’s fees: Look at the fees associated with your mutual fund investments, including the expense ratio and any other fees. High fees can eat into your returns, so it’s important to consider whether the fees are reasonable given the fund’s performance.
5. Assess whether the mutual fund aligns with your investment objectives: Consider whether your mutual fund investments are still aligned with your investment objectives and risk tolerance. If they are not, you may want to consider making changes to your portfolio.

Make any necessary changes

Based on your review, you may want to make changes to your investment portfolio to better align it with your investment objectives. This could involve selling off certain investments or adding new ones.
It’s important to keep in mind that investing carries risk, and there is no guarantee that you will achieve your financial goals. It’s always a good idea to consult with a financial professional or conduct thorough research before making any investment decisions.

Take Control of Your Financial Future with Regular Investment Objective Reviews

It is important to regularly review and revisit your investment objectives to ensure they are still aligned with your financial goals and risk tolerance, especially as your financial situation and personal circumstances may change. By revisiting your investment objectives regularly, you can ensure that your investments are still suitable for your current financial situation and goals.

Are you ready to take control of your financial future and build a more prosperous life in the new year? Investing in mutual funds with Cocolife Asset Management can be a smart way to grow your wealth and achieve your financial goals. With a diverse range of mutual fund investment options to choose from, you can find an investment that aligns with your financial objectives and risk tolerance. Don’t let another year pass you by without taking the steps to secure your financial future. Invest now and start building a more prosperous life this year!