Spring refers to the season following Winter and preceding Summer. From festivals and parades to food and gatherings, every country and culture has its own way of welcoming the new season. It is celebrated in different ways all around the world and for the Chinese, the Spring Festival – also known as Lunar New Year – is one of the most important festivities steeped in tradition, cultural meaning and familial joy.
To welcome the arrival of Spring, many people will roll up their sleeves to clean and declutter their house and surrounding areas. Cleaning the house is symbolic of driving away the bad luck of the previous year, creating a more conducive and welcoming space for a fresh and hopeful start.
The benefits of spring cleaning can extend into your investments. In fact, as a savvy investor you should probably be aware that your portfolio requires regular maintenance to maximise its performance. Why not seize the momentum and give your investment portfolio a much-needed spring clean? Here are some tips:
#1: Review your financial goals and investment portfolio according to life stages and goals
Major changes and life events like starting a family or switching careers can impact your financial situation and in turn, the short-term and long-term goals you make. It can also result in more complex financial needs and responsibilities, such as caring and supporting aged parents and young children at the same time aka the sandwiched generation.
A thorough financial portfolio review can also help you understand if you are well protected and on track; or if adjustments are needed, such as changing investment products according to your risk profile and time horizon.
#2: Adjust your asset allocation
Over time, some investments or asset classes may become under/over-represented in your portfolio and may not support your long-term financial goals. To rebalance the asset mix, you may either choose to sell some investments to buy others or pump in more funds.
#3: Reinvest interest and dividends accumulated
You may have accumulated cash from interest or dividends earned during the past year. Remember the power of compounding interest: the sooner you start reinvesting the better!
If it has been a while since you last met with a financial services consultant, it might be time to set up a session. Speak with me anytime and let’s delve into what you really need!
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