Taking Stock of Your Investments
Once you have invested your money, what’s next?
You will receive an investment statement from your fund manager either quarterly or monthly, indicating how your funds are performing. Your investment statement lists all of your transactions for the statement period. These transactions, which are organized by fund, include deposits, redemptions and distributions.
If you have been investing for a while, you might have noticed some recent changes to your statements. If you have questions, speak to your financial advisor. You should ask whether you are on track to meet your financial goals, and the services that your advisor is providing.
Building your knowledge will prepare you for two new annual reports that you will receive beginning in 2017 under an initiative known as CRM2. The first report will tell you how much has been paid to the firm your advisor works for (dealer), in dollars and cents, for the services your dealer and advisor provided to you over the past year. The second report will tell you how well your investments have performed in dollar terms over the previous year, as well as several other time periods.
These reports will be written in plain language, but may include some unfamiliar terms. Get informed now, so you can make the most of the new reports when you receive them.
Once fully in place, CRM2 will give you more information, which will result in better conversations between you and your financial advisor.
Once a year, you should meet with your financial advisor to review your investments. Make sure your investor profile is up-to-date and genuinely reflects your priorities. This will help you have a more meaningful conversation with your financial advisor about whether you should make any changes in your investments.
The more you understand about your investments, the better equipped you will be to have effective discussions with your advisor that focus on what’s right for you.