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Are you wondering how often you should review your investment strategy? The answer is very simple: every time there is a significant change in your life!
Increase in income
Settlement of debts
Family event
Projects
Before building your portfolio, you no doubt determined your investor profile using the following factors:
 | Your financial objectives (e.g. making financial plans for retirement)
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| Your investment horizon
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| Your degree of risk tolerance
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| Your financial knowledge
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| Your personal, professional and tax situation. |
The short-term performance of capital markets might sometimes be disappointing but do not let yourself be influenced by them. A temporary fallback in indexes is not a sufficient reason for changing a strategy that suits your profile and needs.
On the other hand, when any of the factors making up your investor profile is modified as a result of changes in your life, it is advisable to redefine your strategy to adjust it to your new reality. Here are a few examples.
Increase in income
New employment, a promotion, a bonus, lottery winnings or an inheritance can enhance your savings or investment potential. You will therefore be able to invest more as well as ensure better diversification by including a wider range of products in your portfolio.
Family event
Marriages, births, separations and divorces affect your financial situation. Retirement planning as well as your last will need to be reconsidered. When your children leave home and become more financially independent, you should have greater latitude. Take advantage of it to invest!
Settlement of debt
Have you paid back your personal debts? Is your mortgage loan finally coming to an end? Here again, your investment potential should increase.
Projects
Are you planning to start your own business? Do you want to retire earlier? Or take off on a round-the-world trip? All such projects have an impact on your investments. Talk to your Desjardins advisor about your projects for sound tips on whether your strategy is still in line with your needs.
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