Investing doesn’t end once you’ve built your portfolio. To ensure you’re on the right path to achieving your financial goals, it’s essential to regularly evaluate the performance of your investments and make adjustments as needed. Monitoring your investments helps you stay engaged, ensures your portfolio remains aligned with your goals, and enables you to make informed decisions about rebalancing.
This resource from FINRA explains the importance of performance evaluation and how to measure the success of your investments. It outlines key performance measures like yield and rate of return, offering examples of how to calculate these values. The resource emphasizes the need for annual evaluations to track your progress and spot any necessary adjustments. It also provides helpful tips for creating a master spreadsheet to track investments across multiple accounts and factoring in taxes, fees, and inflation when assessing your returns.
