Investing can often feel like planting a tree. You set it in the ground and hope it grows steadily with little intervention, but the occasional visit. But in practice, a “set it and forget it” approach rarely works over the long haul. Just as conditions around a tree change (weather, pests, soil quality), so too do the forces acting on an investment portfolio. Regular reviews are essential, not just to measure performance, but to ensure your investments remain aligned with your changing goals, risk appetite and the external environment.
Markets and sectors evolve too, so what looked like a compelling allocation one year may no longer create the same tailwinds. Macroeconomic shifts, regulatory changes or rising interest rates can make previously ‘safe’ options more dangerous. This all means that “set and forget” investment rarely works. Regular check-ins help you spot misalignment or overexposure and adapt before small drifts compound into big gaps.
Reassess your goals and circumstances
Even if markets were static, your life likely isn’t. Over time your goals, obligations or financial position may shift. You might get closer to retirement, take on new dependents, change jobs, or face a liquidity crunch. Your time horizon (length of time considered for your goal), tolerance for loss, or tax situation can evolve so it’s wise to revisit not just your holdings but also why you hold them.
Ask yourself:
- Is my risk tolerance still accurate in light of any recent major life changes?
- Does my “time horizon” remain the same?
- Do I have new liquidity needs or anticipated outflows?
- Has my tax situation shifted (for instance, crossing into a higher bracket, or gaining access to tax-efficient accounts)?
A portfolio that suited you five years ago may no longer match who you are today. Periodic reassessment helps ensure your investments support your current and future needs, not your past self.
Consider using model frameworks and external services
One way to maintain discipline and consistency is to lean on structured frameworks or managed solutions. Model portfolios (e.g. target-date funds, risk-based models) or discretionary services can act as guardrails, helping prevent emotional drift or missteps.
Taking advice from a model portfolio service can be particularly helpful when you don’t have time or inclination to manage every detail. Before choosing, however, think about your risk tolerance, willingness to delegate, and long-term aims. A good provider will rebalance, adjust exposures and monitor against your goals, ideally for a transparent, competitive fee structure.
Monitor costs, fees and platform changes
Even if your asset mix remains constant, what can kill long-term returns is creeping costs. Platform, fund, advisory and transaction fees gradually erode gains if left unchecked. In the UK, these issues are especially topical: for example, Vanguard introduced a new £4 monthly minimum fee for DIY investors with balances under £32,000, a change that may make the platform disproportionately expensive for smaller portfolios.
That shift forces many investors to reconsider whether their current provider still offers competitive value. It’s wise to audit fees: compare fund expense ratios, platform charges, implicit transaction costs, and advisory fees. Most importantly, if better deals exist, then don’t be afraid to reallocate investment funds accordingly.
