Money Talks News - The end of the year is a super busy time. Between the parties, the decorating and the shopping, there's little time for anything else.
But this is also the time of year when you really need to be reviewing your family nest egg, 401(k) and any other investments you have. Fortunately, there is a quick three-step review process you can do in less than 15 minutes.
Step one? Check your performance. How have you done this year? Compare your returns to indexes that represent similar investments.
For example, if you're in a stock fund, you can compare the results of that fund to an index like the S&P 500. There are indexes also for bond funds. You can also compare your funds to other similar funds.
Step two: See what you're paying in fees. If it's a 401k, ask your employer for a list of all the fees you've paid. Hopefully, you're not paying more than one percent, but again, you can compare your funds to others to see how those fees stack up.
Step three: Make sure you've still got the right asset allocation. In other words, the percentage you have in stocks, bonds, and cash. Make sure you're not taking more risk than you bargained for.
Investment advisors have a saying that goes like this: "Most people spend more time planning their vacation than they do planning for their retirement."
It's best to not follow suit. Take a little time before year-end, look over your investments. Because if you spend a little time now, it might just give you more money to spend later.
For more information go to the Money Talks News website and search for Investment Review.