At the risk of utilizing a term that is quickly becoming, to some people, a cliché, I wanted to wind down the year by taking my very own “investment selfie,” a casual self-portrait of how I’m faring from a financial perspective.
Setting up the Shot
Let’s first make sure we have our background ready to go. I use an online resource that pulls together all of my investments across my various accounts. This allows me to see the big picture, all together in one place. I can see my 401(k), my daughter’s 529 and other custodial accounts, my investment account and my husband’s IRA rollover account. It also reminds me what’s missing — did I roll over that old 401(k) that I’ve been meaning to?
Choosing the Right Thing to Focus on
In looking at my investments, do I have the lens focused on the right subjects? Do I have the right amount allocated to the stocks in my investments versus the bonds? How much cash am I sitting on? Do I have enough invested outside the U.S.? Underpinning all of these questions is the biggest one of all. Are my investments on track to get me to my goals?
What’s in the background?
My “good” side intended to max out my 401(k), get cash off the sidelines and make sure I contributed fully to my daughters’ 529 plan. My busy side got a little distracted, and I missed out on a couple of opportunities to save more and invest. Seems like it might be time to tie up some loose ends.
Pulling Others into the Picture – Photobombing
My financial goals revolve around my family. I want to make sure my daughters are supported in their educational pursuits. I want to make sure my spouse and I have a realistic plan we can stick to. Reminders of them are vital in snapping the best investment selfie.
So even before you prepare for 2015 – re-evaluating your investments, reflecting on the lessons learned and developing New Year’s resolutions – make sure you’re going in clear-eyed by taking your own investment selfie. What would yours look like? Share your stories here.
Heather Pelant is Personal Investor Strategist for BlackRock. She is a regular contributor to The Blog and you can find more of her posts here.