Your investment portfolio is a powerful tool in achieving your financial goals, but how do you know if it’s positioned correctly? At BentOak Capital, we assist clients with their portfolios to help it reflect their unique needs, timelines, and risk tolerances. Here’s how you can evaluate whether your portfolio is aligned with your financial goals.
1. Assess Your Time Horizon
Your investment strategy should be based on when you need to access your funds. Are you saving for a home in the next few years, or are you building wealth for retirement decades down the road? A shorter time horizon typically requires more conservative investments, while a longer horizon allows for a more growth-oriented approach.
A well-structured portfolio adjusts over time. For instance, if you’re nearing retirement, it may make sense to shift from high-growth assets to more stable, income-generating investments. Reviewing your portfolio regularly ensures it continues to align with your financial goals and your evolving financial timeline.
2. Understand Your Risk Tolerance
How comfortable are you with market fluctuations? Some investors can weather volatility with ease, while others may lose sleep over short-term losses. Your portfolio should match your personal risk tolerance so you can stay invested through market ups and downs without unnecessary stress.
To gauge your risk tolerance, consider how you reacted during past market downturns. Did you remain invested, or did you panic and sell? Understanding your emotional response to market changes can help determine if your current asset allocation is appropriate for aligning your portfolio with financial goals.
3. Evaluate Your Risk Capacity
Beyond personal comfort, consider how much risk you can afford to take. Your overall financial situation—including income, savings, and other assets—determines your ability to take on investment risk. Someone with a strong financial foundation may be able to assume more risk than someone with limited savings or high expenses.
Life changes, such as a career transition, inheritance, or unexpected expenses, can affect your risk capacity. Regularly reviewing your financial standing helps ensure your portfolio remains aligned with your financial goals.
Need Help Aligning Your Portfolio?
If you’re unsure whether your portfolio is structured appropriately for your financial goals, BentOak Capital can help. Our team of experienced advisors will assess your investment strategy and ensure it aligns with your time horizon, risk tolerance, and financial capacity.
Reach out today to take the next step toward financial clarity and aligning your portfolio with financial goals.
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by BentOak Capital (“BentOak”), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from BentOak. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. BentOak is neither a law firm, nor a certified public accounting firm, and no portion of the newsletter content should be construed as legal or accounting advice. A copy of BentOak’s current written disclosure Brochure discussing our advisory services and fees is available upon request. Please Note: If you are a BentOak client, please remember to contact BentOak, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. BentOak shall continue to rely on the accuracy of information that you have provided or at www.bentoakcapital.com. Please Note: IF you are a BentOak client, Please advise us if you have not been receiving account statements (at least quarterly) from the account custodian.