How Often Should a Financial Advisor Update Your Portfolio?

Many financial advisors reevaluate and update their client’s portfolio only once a year or semi-annually, and for some investors, this may be sufficient. For example, a young  person who has 30 or so years of work ahead before retirement can be contemplated may not require much in terms of updating if long-term, well-performing investment options are chosen initially. However, one foundational principle at the core of the Spinnaker Investment Group philosophy is that one size does not fit all investors; how often your investment advisor should update your portfolio depends upon your specific needs as an investor interlaced with the unique situations impacting the overall economy at the time.

Goals change

One of the first lessons new investors learn is to identify their goals. Start with the end result and work backward to develop the specifics of the best way to achieve the desired goal. The goal may be retirement, college funding for a child, the down payment for a home, or some combination of these or others. No matter how long-term certain goals may be, changing circumstances may cause you to rethink your priorities. Your previous main goal in investing may not seem so important now, and this reality doesn’t occur based on a date on the calendar. Goals are dynamic and the manner in which your portfolio is structured should be, as well.

Life Changes

Life and investment are inevitably intertwined. And while age and income patterns generally follow along a common path, the unplanned and unseen situation may arise that changes everything. A marriage or a divorce, a lay-off or a job promotion can all serve to trigger the need to rethink how your investment portfolio is structured.

The world changes

It’s always been true that the past is not predictive of the future, but the unprecedented circumstances in 2020 has reinforced the need for investors of all levels to be prepared to act quickly if the need arises. 

A financial advisor needs to provide sound, fundamentally strong planning options for each client tailored to their needs, but that is just the beginning of the relationship. Frequent check-ins are necessary to make sure the current investments make sense in consideration of whatever changes have occurred. If your investment situation is lacking in these areas, perhaps it’s time to see how the Spinnaker Investment Group can make a difference for you. Enter our latest investment tool,  SPINNCYCLE™, to see where you stand today. 

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