Family trusts can provide several benefits for business purposes, tax optimization, or estate planning....by Jonathan Anthony
Why it’s Important to Track Your Investment Portfolios
It is essential to track your investment portfolio. The assets you hold, such as stocks, bonds, and mutual funds, are out to achieve long-term goals. Do you know if they are hitting their marks?
With today’s busy lifestyles, there are many moving parts to keep track of, and your investment portfolios might be one of the most important. Managing your retirement plan with your weekly and monthly budgets is essential.
You can track a portfolio in several ways, but here we want to emphasize why tracking these assets is so crucial.
5 Reasons to Track Your Investments
You and your spouse may have multiple assets stashed all over the place, with different brokers, trading platforms, 401k accounts, and IRAs. You’re putting in work to keep an eye on everything, which is why tracking your investment portfolios is so important.
1. Know How Your Investments Are Performing
It’s great to keep up with how your investments perform compared to the market – or the economy – in general. Stock exchanges, bond markets, and currencies have regular swings, and the economy has periods of inflation or recession that affect everything.
You need to know that your investments are holding up to these driving forces, if not beating them.
2. Get Insights Into Gains And Losses
Portfolio tracking lets you know your investments’ ups and downs and whether they represent trends. You can see which of your holdings perform best in a bear market, when is a good time to sell, and find ways to boost your wins in bullish times.
3. Accurate Information To Help Diversify Investments
Diversification is fundamental in growing your wealth. You want to hold different stock sectors and maybe even expand into real estate and bonds. Tracking your investments helps you decide what segments of your assets to emphasize and when. This allocation requires constant fine-tuning.
How’s the bond market doing? What about global currencies? Is that mutual fund doing better or worse than your ETFs? Plus, those cryptocurrencies are known for volatility.
4. Know When Dividends And Stock Splits Hit
Investors like to keep an eye on some of the nuanced actions in the market. Dividends are small periodic payments to shareholders that add to a stock’s value. A stock split is when a company increases the number of shares and reduces the share price.
If dividends fall, it may be a sign that things are changing in a company. And stock splits make for more affordable entry points and may draw in extra investors.
5. Know How Much You Are Paying In Fees
Brokers charge a bit to manage your money, as do mutual funds and ETFs. Fees are just a part of investing, but you can budget for them and build them into your plan.
Tracking everything lets you watch out for these charges and ensure you get your money’s worth.
Get Started With Your Own Investment Tracking
Tracking investments can be a lot of work. You can set up an Excel spreadsheet and manually plug in figures as your account statements come in. Or maybe you want to leave it all up to a broker and wait for that phone call.
If you want to get started on your own, it’s as easy as downloading to StockMarketEye and putting all of your accounts into a system that tracks everything for you.
The Eye will track stocks, mutual funds, exchange-traded funds, options, currencies, splits, dividends, and more. It’s your own personal on-screen ticker and tool for making the right decisions on your future.