Download How to evaluate how well your investments are doing

WFLC Action Tips:
How to Evaluate your
Investments
1. Create or Revisit your Investment Plan
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Here’s how to make a plan or to review the one you have:
1. Start with goals – goal by goal plan
2. Consider time horizon – ie. when will you need the money
3. Evaluate your risk tolerance
4. Create your “Ideal Asset Mix” or target asset mix
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Look at your how you are invested now:
 Does it look like your target mix?
 If not, make a plan to adjust/rebalance
2. Have Some Understanding of What’s in your Portfolio
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If you have mutual funds, what kind are they?
Are the investments consistent with your values?
How many funds do you have and how many accounts do you have?
Diversification is good, but keep things simple
Educate yourself on the basics of stocks, bonds & mutual funds
3. Review the Performance of your Investments Annually
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What rate of return did you get last year, over 5 years and over 10 years?
How does this compare to what’s been happening in the overall markets?
(see globefund report attached)
If you have 100% in Canadian stocks and your performance was 5% and the
overall markets was 9%, review with your advisor
Insist that your advisor provide you with rate of return numbers
If you are managing your own portfolio, you can calculate rate of return at:
www.showmethereturn.com
4. Understand the Fees you are Paying
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Nothing wrong with fees, but are you getting value?
How much are you paying? MER? Sales commissions?
Mutual fund fees are usually imbedded in the return
Ask your advisor to explain the fees you are paying
5. Understand How to Read your Investment Statement
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Ask your advisor to explain how to read your statement
If your statement doesn’t show rate of return, complain!
www.womensfinanciallearning.ca