Track Your Portfolio Wisely With 4.5 Wealth Management Tips

ThinkstockPhotos-160318694-033483-editedWealth management is often a complex and stress-ridden task. By learning to track your portfolio in a simpler and smarter way, you’re in a much better position to reach your financial goals and alleviate the ensuing stress. 

Read the following four and a half tips to become a smarter investor and ease your path to retirement and beyond:

    1. Know Your Coordinates On The Wealth Map

If you don’t know what your total net worth is today, how could you reasonably expect to make it to retirement – or do so without stress? It’s like trying to get directions from Google Maps without knowing your starting point. The app won’t give you directions without Point A and Point B. 

To reach your expected future net worth, you must first determine your current location on the wealth map. From there, you’re equipped to create a realistic plan to achieve your long-term financial goals. Account aggregation gives you a real understanding of your total wealth.

Once you’re able to “drop a pin” on your current and future net worth, evaluate your risk profile to determine if you should expect to achieve your financial goals within your estimated time frame.

    2. Take Responsibility 

When the Wright brothers flew for the first time, their planes didn’t have many instruments to help them in flight. Today, technology automates most of a pilot’s functions, making his or her job easier and more efficient. Yet, a pilot still has great responsibility.

The same can be said for you and your wealth management.

While investment tracking software and apps have automated much of the process to track your portfolio, this doesn’t mean that you no longer have responsibilities. Even if you partner with a financial advisor, you are ultimately in control of your future net worth.

    3. Consider Your Future Self

It’s difficult to think about your future and make planning for retirement a priority while you’re young, but doing so has an enormous impact on your ability to accumulate wealth over the long term.

Studies have shown that if someone showed you a photo of yourself and then digitally aged your face to depict what you might look like later on in life, you’d be far more receptive to changing your current spending and saving patterns in a discussion regarding your future net worth. Try envisioning your future self now to set yourself up for success. What you do today and what you did yesterday determine your tomorrow.

     4. Make Account Aggregation As Easy As Possible

Account aggregation is just the first piece of the puzzle, but making that first step as easy and painless as possible positions you for greater success. You can’t simply estimate your total net worth. In order to develop an appropriate goal and accurately track your progress, you need accurate data. Your success is only as good as the information you have in the planning process. It must be exact.

If accessing this data is challenging, you’re unlikely to take the necessary time to determine the necessary information. You’re even less likely to spend additional time analyzing that data and adjusting your plan. If the aggregation and accuracy of data is taken care of, however, you’ve already won half the battle.

    4.5. Don’t Forget Assets And Liabilities

When analyzing their wealth, people often forget to consider all of the factors that contribute to their total net worth. From annuities to credit card debt and loans, make sure you’re considering all of your assets and liabilities. Your complete wealth is defined by your total assets minus your liabilities. Once you accurately track your total portfolio, you have far more control over your money.

Learn to save yourself from potential mistakes that impact your future net worth. Download our informative whitepaper today to gain control of your investments.

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