A financial portfolio is a record of all of your financial activities for the last five years or more. This includes all types of investment and, where you have invested. It should show a trend of steadily increasing wealth over time. It is worth taking a bit of time and considering whether it is time to create a new financial portfolio or if you have it well enough to keep going for another year or two. It is never too early to start building your financial portfolio as this will reduce the amount of risk you may be exposed to and could even lead to gaining a pension at a later date.
Your financial portfolio should include details about any stocks, bonds, bank accounts, savings accounts, loans, mortgages, and so on. You should detail the name of each investor as well as the type of investment they have chosen. If you are unsure about what type of investment you should put in, take a look at your financial portfolio and think about how you could invest it and what type of return you would like to achieve. Do not forget to take account of your pension and savings as these will have an effect on your pension in the future.
When completing your financial portfolio, you should list every single investment you have made during the last year. Include any CDs you may have, savings accounts, money market funds, bonds, mutual funds, and so on. It is always worth taking stock photographs of your assets so you can easily monitor their performance over time. You should also take photographs of your pension pot as well as your life insurance contract. If you need more details, talk to a professional adviser who will be able to fill you in.
There are various ways you can take your financial history and compile it into an effective financial portfolio. You can use software designed specifically for this purpose, such as Quicken and Microsoft Money. You can choose which method suits you best. There are downsides and upsides to each, and whichever you choose should provide you with peace of mind.
You can also try applying for free financial history reports online from the government, banks, or credit unions. This is a quick and relatively easy way to obtain a snapshot of your past financial history. Be aware, however, that you will not receive a full picture unless you make a lot of submissions, so remember to keep an eye out for good offers. Also remember that most online reports do not include details of your portfolio, only your financial history.
If you would like to take advantage of more detailed financial history reports, you should consider making a CD or IRA account. This will allow you to keep your portfolio and records on a side, separate from your other assets. The advantages of this are that you can access your portfolio and history whenever you want, for as long as you wish. The disadvantages are that you will have less liquid cash, and you will have to pay taxes on any earnings within your IRA account on a tax-deductible basis. In addition, some restrictions may apply to how much money you can contribute to your IRA each year.
If you want to take a snapshot of your entire financial history and build a comprehensive portfolio that you can access at anytime, there is another option. You could go with what’s known as a financial portfolio approach. This will allow you to pull your financial information directly from a variety of different sources and create a report that gives you a snapshot of your financial health. You can view this report at any time, online, on paper, or on your mobile phone. This option allows you to make better-informed financial decisions.