Monitoring Your Allocation, Progress and Life Stages
Reflect
The final step of the PRISM Process is effectively monitoring your portfolio. It is designed to help you view your portfolio within the context of your goals, desired allocation and current stage of life.
There are three key parts to the portfolio monitoring process:
- Monitoring your allocation
- Monitoring the progress toward your goals
- Monitoring your personal situation for any changes in your life or family status
You will learn how to combine all three steps, which will help you determine if you are still on track to reach your goals or if adjustments need to be made.
There are generally four outcomes of this final monitoring step:
- No changes will need to be made to your portfolio
- Your portfolio's allocation will need to be brought back to target
- You will need to adjust your savings rate and/or withdrawal rate after reviewing your progress
- Your goals and/or tolerance for risk will need to be revised, leading to a complete review of your PRISM wealth building plan
In the next few lessons, we will show you how to perform a disciplined portfolio review and make objective decisions. Lastly, you will also learn what could prompt you to revise your wealth-building plan and why the PRISM Process is meant to be cyclical – used time and time again during different life stages.
Participate
To get started with the first lesson of Monitoring Your Allocation, Progress and Life Stages, you will need to understand where to start. If you already have a monitoring process for your portfolio, then you're in good shape and can add/remove items within your process based on our teachings.
If you don't have a portfolio monitoring process yet and want to build one, we will show you how easy it is to implement and maintain an effective process to help keep you on track to reach your financial goals.
For this first introductory lesson, we encourage our members to watch the 2-minute video, download the attached worksheets and answer the discussion question below.
- Do you have a formal monitoring process for your portfolio and if so, what is it?
Now, we want to hear about your findings! Please share your perspectives in the discussion below.
Download the "Monitoring Your Allocation, Progress and Life Stages" worksheet
Questions about coursework, webinars, worksheets, etc.? Drop your inquiries in the discussion below. We're happy to help!
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Jenna Brashear
AAII Community Manager
Chicago, IL
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