Carrying out a financial check-up on a regular basis is essential to ensure that your investments remain aligned with your financial goals.
Circumstances in your life, in the markets, and in the economy change, and therefore it is essential to maintain an active and informed management of your investment portfolio.
Learn what a financial check-up is, when you should carry one out, and how to apply it to your investment strategy in a practical and effective way.
What is a financial check-up?
A financial check-up is a systematic review of your financial situation and the performance of your investments. Similar to a routine medical exam, it helps identify risks, correct deviations, and adapt your strategy to new realities.
The benefits of conducting a financial check-up
- Update your risk profile and your objectives;
- Rebalance your investment portfolio;
- Reduce costs and inefficiencies.
- Improve decision-making based on data and clear objectives.
When should you carry out a financial check-up?
Although there is no fixed schedule, there are key moments when such a review is highly recommended.
01 At least once a year
Ideally carried out at the beginning of the year, alongside the setting of financial goals and a review of performance.
02 After changes in personal circumstances
Situations such as job changes, income fluctuations, changes in marital status, or approaching retirement can influence your risk profile and financial objectives.
03 In response to market changes
Economic fluctuations or market events can unbalance asset allocation and warrant a review.
04 Whenever there are tax or regulatory changes
Changes in tax rules can have a direct impact on investments. A financial check-up helps you adapt efficiently.
How to carry out an effective financial check-up?
Carrying out a financial check-up requires a careful and structured review of the various components of your portfolio.
01 Reassess your financial goals
Investments should reflect clear objectives. These can be organised according to the time horizon:
- Short term: focus on security and liquidity
- Medium term: growth with controlled risk
- Long term: growth with tolerance for higher volatility
This segmentation helps ensure that the investment strategy is aligned with specific goals.
02 Review your investor profile
Over time, your risk profile may evolve. Changes in financial circumstances, age, or personal goals justify a new assessment. An outdated profile can lead to a portfolio that is misaligned with actual needs.
03 Analyse the allocation of investments
It is essential to review the current distribution of financial assets. Excessive concentration in a particular type of investment or a loss of diversification can unnecessarily increase risk. When needed, the portfolio should be rebalanced by adjusting asset weights.
04 Assess the performance of investments
It is useful to assess whether investments have been contributing to the defined objectives. If there are products with consistently weak performance, it may be time to consider alternatives.
05 Review the associated costs
Some financial products may involve significant costs, such as fees or management charges. When reviewing your portfolio, it is important to assess whether these costs are justified or whether more efficient options are available.
06 Make the necessary adjustments
If a deviation from the defined strategy is identified, it may be necessary to adjust the portfolio. The objective is to maintain a balanced allocation that is consistent with the investor’s profile and objectives.
07 Seek professional support
Professional guidance can be helpful in interpreting data, evaluating options, and defining a solid, personalised strategy. It is an effective way to ensure that decisions are well informed.
A financial check-up is a practical and effective tool for ensuring that investments remain aligned with defined objectives. By regularly reviewing the portfolio and the key factors that influence it, it is possible to improve control, reduce unnecessary risks, and make more informed decisions.
This communication was produced by Banco Finantia for information purposes only and does not constitute an investment recommendation. In preparing this communication, no investment objectives, financial situations, or specific needs of investors were considered. Accordingly, the information was not tailored to any actual or potential investor, nor were any specific circumstances of such investors taken into account.
The information disclosed is based on market conditions prevailing at the time, as well as on information obtained from recognised third-party entities, which are public sources. Banco Finantia has not independently verified the data or information provided by those entities. As the recipient of this communication is aware of this situation, Banco Finantia cannot, under any circumstances, be held liable for any errors, omissions, or inaccuracies contained in this document or arising from the use of such information. Banco Finantia accepts no responsibility for any direct or indirect losses or damages that may be incurred by those who carry out transactions based on the information provided.
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