Don’t Give Up! How to Improve Your Plunging Portfolio

Don’t Give Up! How to Improve Your Plunging Portfolio

May 30, 2014


When you start to build your retirement, the rule of thumb is this:  the sooner the better and a little each month. But, what do you do when your portfolio performance begins to plummet, and you can’t keep up with market volatility?

Here are some initial steps to keep your portfolio on track and your mental state at ease:

  1. Identify your problem
    1. How far has your portfolio fallen?
    2. Compare your portfolio to a benchmark/succeeding one
  2. Determine the reason why
    1. Is your portfolio diversified too aggressively?
    2. Are your portfolio holdings in line with your current financial goals and unique circumstances?
  3. Look at the investments you own vs. timing of the market
  4.  Create a Plan of Action
  5. Create Solutions
    1. Re-Allocate your investments if necessary
    2. Why is your portfolio underperforming?  Poor stock earnings?
    3. Decide to invest or remain in cash
    4. Implement your plan of action
    5. Consult your financial advisor to make any necessary adjustments

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