Monday, November 13, 2006

How to review you investment portfolio (Part 2)

Form Investor Insights by TD Waterhouse


  1. Are my targets realistic?
  2. Are returns adequate? Even if they hit your targets, you need to make sure returns are sufficient to fund your future plans. If your portfolio isn't growing quickly enough to meet goals such as retirement, it may be time to make changes. Pay attention to longer-term performance, rather than short-term. Short-term volatility in your portfolio means little when you have a long-term horizon.
  3. How is my portfolio performing compared with markets? Compare percentage returns with appropriate financial market indexes.
  4. Am I within my risk tolerance? Taking on more risk is a way to increase potential returns, particularly through growth investments such as stocks. But it also increase your potential for losses. Know how much risk you're willing to take and check regularly to see whether your current risk level is acceptable.
  5. Am I taking full advantage of my RSP? One of the best ways to reduce taxes is by making the maximum allowable contribution to your RSP every year.


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