Decluttering Your Investment Portfolio

Social media is bursting with discussions of streaming shows about decluttering. The Marie Kondo principle that what you have should ‘spark joy’ has led to a frenzy of people putting all their clothes in a giant pile and discarding whatever doesn’t give them a thrill. (Or in the case of one writer, recommending you build a fort.)

Whatever you think of Netflix’s great decluttering gurus – like Kondo (Tidying Up), Jill Pollack (Consumed) and the lads behind the Minimalism documentary – there is wisdom in taking time out to have a look at what you have and whether it’s serving your needs. This is as true of your investment portfolio as it is of your kitchen cupboards.

How often have you reviewed your investment portfolio with an eye to assessing how well it’s performing, as individual investments and as a whole?

Do you have Australian stocks that have underperformed for a long period?

Do you have an investment property that’s paying its way?

Is your superannuation bringing the returns it should be to meet your retirement plans?

Do you have gaps in the kinds of investments you have?  Perhaps you’re over-invested in technology and underinvested in energy? How are you balancing risk and return?

Perhaps it’s time to lay your investments out on the table and take a good, hard look at what each offers you, individually and collectively. Examine each one in turn and if they don’t ‘spark joy’ – or at least give an indication that the investment is holding its value – it might be time to thank that company for its efforts and let it go.

It helps to take the long view when assessing your investments, as well as having your finger on the pulse of current market behaviour and future projections. Some poorly performing investments might realise a loss if you sell them now, so you’ll need to consider the possibility of their recovery in the long term, or whether selling low now is better than selling even lower later.

It will take time, effort and that ever-present buzzword ‘mindfulness’. If nothing else, you’ll finish the exercise with a very clear understanding of what investments you have and where they stand.

If you would like to speak with a professional investment adviser about how your portfolio is positioned for the year ahead, contact United Global Capital today on 03 8657 7640 or email [email protected] for a no cost, no obligation consultation.

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