Life happens - you may want to review your investments
- 30th July 2021
Life doesn’t stand still and neither do your investment portfolios or later life plans. This is why we recommend that you regularly review your investment portfolio to ensure that remains aligned to delivery on your objectives.
As you travel on life’s journey, there are many events that may be a catalyst for review of your investment portfolio. In this article we take a look at some of those life events where you really should look at your investment portfolio, even if you have not regularly done it in the past. We have also created a great infographic here to highlight those life events.
Congratulations as you prepare to enter into a new and exciting chapter of your life. Once married however, your investments not only need to provide for you but also for your partner. We would always recommend that you should look at your investment portfolio before you head to the altar.
As difficult as it may seem to imagine, you do need to think of whether you want to protect any elements of investment portfolio through a pre-nuptual agreement. This is particularly important for couples who may have family from a previous marriage where you may wish to have some kind of protection on assets for your children.
Next is to ensure that your investments are balanced, taking into account the welfare of your new partner. You will both need to discuss your future financial goals. Your portfolio will now need to be aligned to deliver on your objectives and work to provide the financial aspirations you have for both your futures.
A new arrival
How exciting, its great news that you are going to become parents. You are about to embark upon a whole new level of emotional and financial responsibility. This little person is about to enter into this world and will be completely dependent upon you.
It can be so exciting getting ready for the arrival of your baby, decorating the nursery, buying the pushchair and getting everything physically in place. Don’t forget at this point, you should also look at your investment strategy again. Once baby is born, time will fly away with you. That is why we would recommend that financial planning is something you review before your new bundle of fun arrives.
Getting ready to slow down
Your children have flown the nest and now is the time that you may be thinking about your future plans. You might now be considering your retirement or potentially an early retirement, planning those holidays that were on hold whilst the kids were at home, you may even be thinking about your pension and making the most of flexible draw down if you have it to fund that place in the sun that you’ve always dreamed of.
This is where it is absolutely critical that you get the right advice. You need to rebalance your investments, ensure you have all the tax wrappers in place and consider the implications of any potential pension drawdown. The sooner you do this the better. Make sure all your hard earned money continues to deliver the lifestyle that you have become accustomed to and dream of having in your later years.
Losing a Job
This can be devastating news for anyone at any time of life. We understand that the last thing on your mind will be rebalancing your investments, but this really is a critical time to review your position.
Liquidity in your portfolio is more important than ever right now. You will want to make sure that any bond allocation and cash allocation are fully intact. You might even need to consider pulling back on equity investment if you find yourself in need a more conservative approach to your investments. Hopefully, you will find a new job soon and replace your income, but it is always better to be prepared.
We all hope we will never have to go through this, however the reality of life is that divorce can and does happen. The sad fact is that divorces are not always amicable and assets can indeed become one of the prominent focuses of a divorce settlement.
You will want to look at your portfolio and reassess your future financial plans. Your future may look different now so your portfolio needs to realign itself to meet your later life plans once again.
Life happens – but don’t let it take over
We have looked at some of the common life events where you may need to look at your investment portfolio. If you have a managed portfolio with an expert investment adviser, you should be having periodical discussions and reviews to ensure that your investments continue to deliver of your goals, whatever they may be on your journey through life.
With recent events in mind, reviewing your portfolio is more important now than ever. You should at least have an annual review of your managed portfolio.
Whatever life has in its wake for you, your investment adviser will be there with you every step of the way to keep your financial plans on track.
This document is for information only and should not be construed as advice or an offer, invitation or solicitation to enter into any financial obligation, activity or promotion of any kind. Please talk to your Financial Adviser as to the suitability of any investment.
All data and figures referred to in our news section are correct at the date of publishing and should not be relied upon as still current.
Information contained within this article is not a personal recommendation of Forrester Boyd Wealth Management. The wording in this article is not to be construed as an offer or advice. We recommend you seek advice concerning suitability from your investment adviser.