Lose weight ( from excess fees )
The U . S . stock market has had a tremendous year , but if your portfolio ’ s performance is a bit sluggish , it ’ s time to take action . Costly fees may be weighing down your portfolio and hampering its future potential . A NerdWallet study found that a millennial paying 1 % more in investment fees than his peers will sacrifice nearly $ 600,000 in returns over 40 years .
Don ’ t be that person . Here ’ s how to trim the fat : Take note of the expense ratios for each investment in your portfolio and then research whether less costly alternatives will let you achieve the same goal . Have an account with an online broker or robo-advisor ? Many of these providers offer access to financial advisors who can assist with this process . Or you can consult with one directly .
Eat healthier ( in your portfolio ) This time of year , it ’ s easy to overindulge on sweets , whether at the dessert table or within your portfolio .
With U . S . stocks up about 20 % in 2017 , your once-healthy portfolio probably has gotten out of whack . It ’ s time to restore your intended allocations to stocks and bonds . Experts recommend at least 5 % to 10 % of your portfolio be allocated to bonds , but your strategy may vary depending on your risk tolerance or age .
In 2018 , resolve to rebalance your portfolio and set up automatic rebalancing , a feature offered by many providers or inherent to target-date funds you may have in your 401 ( k ). Sometimes that ’ s as simple as a click of a button .
Get ( your accounts ) organized
So you ’ ve packed up old clothes and donated them to charity . But that 401 ( k ) from your first job ? Somehow it ’ s still hanging around .
Let 2018 be the year you finally roll over your old 401 ( k ) into an IRA . Why ? You ’ ll most likely pay lower fees than with that old employer ’ s plan , plus you ’ ll gain access to a broader selection of investments and possibly more guidance from your new broker .
A rollover will require you to fill out some paperwork and funnel money into new investments , but it ’ s time well-spent . Lower fees , greater flexibility and more money at retirement ? You can probably spare a couple of afternoons for that .
Learn a new ( investing ) skill
While your friends learn French , Parlez-vous investing ? If you answered no , your burgeoning interest is calling . ( We know it ’ s there ; you ’ re reading this list .)
It ’ s easy , and often wise , to take the set-it-and-forget-it approach to investing . But that may not be enough to satisfy a curious mind . Becoming “ invested ” will make you more engaged in the lifelong pursuit of managing your finances . Gravitate to what interests you , be it reading an investing book , researching how options work ( hint : they ’ re not as difficult as they seem ) or trying your hand at trading stocks .
Just be sure to keep your newfound hobby in check . Reading a few books does not the next Warren Buffett make , nor should you overhaul your portfolio to chase the latest investment du jour .