PRISM: Prioritizing Your Goals

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Monitoring Your Allocation, Progress and Life Stages: Lesson 6

  • 1.  Monitoring Your Allocation, Progress and Life Stages: Lesson 6

    Posted 06-02-2022 17:25

    The Importance of Having a Portfolio Monitoring Process  

    Reflect  

    Did you know your PRISM Wealth-Building plan is meant to evolve over time instead of just exist as a static document? 

    As we wrap up Step M – Monitoring Your Allocation, Progress and Life Stages, you can see how having a clear process helps you identify changes that may prompt an adjustment to your portfolio or an adjustment to your goals. We want to illustrate a few key points on how to effectively use your monitoring process: 

    Monitoring Allocation  

    • Check to see if your portfolio is reasonably close to your target  
    • Allow some room for fluctuation; percentage bands can help (see lesson 2 in this step)  

    Monitoring Progress  

    • Use the Monitoring Your Progress worksheet to determine whether your portfolio is reasonably close to where it should be  
    • If it is too far below, you may need to increase how much you save, reduce your withdrawals and/or delay your goal  

    Monitoring Life Stages  

    • Use the Monitoring Your Life Stages worksheet to determine if any major changes have happened to you or your family  

    If there have been changes to any of the above areas, a complete review of your personal PRISM plan may be warranted. This why we also stress to fill out each worksheet, take notes and keep these documents in a safe spot to review and revise later down the road. 

    Participate 

    Since this is the final lesson before we host the rescheduled PRISM Webinar event in the next few weeks (more details to come), we want to ensure you've downloaded and filled out both worksheets for Step M. 

    Now, it's time to share what you've learned in this section of the course. 

    1. On a scale from 1-5 (1 being unsure and 5 being confident), how do you feel about your portfolio monitoring process?
    2. What was one takeaway that you learned in Step M about using PRISM cyclically or developing a monitoring process for your allocation, progress and life stages? 


      Download the "Monitoring Your Allocation, Progress and Life Stages" Worksheet and Interactive Spreadsheet 

      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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