Monitoring your investment is essential whether you work with an adviser or broker or perform all the trading activities yourself. When you keep an eye on your investment, it allows you to prevent smaller problems from turning into bigger issues.
1. Keep all Documents
Read and keep all documents and reports you receive from your mutual fund, investment advisor, or broker. Check these documents to ensure your account statements are accurate. According to Alan Safahi, an experienced entrepreneur and San Francisco-based startup company founder, it is crucial to communicate with your adviser or investment professional. The purpose is to identify and fix problems if any.
2. Get all Confirmations
Alan Safahi Orinda recommends getting all confirmation and account statements. Make sure you receive these documents directly. If you fail to look after your investments, you will experience a wide range of complications. Therefore, get copies of your confirmations and account states and send them to someone you trust if you can’t look after them yourself.
You can send these documents to a family member, accountant, or lawyer. The purpose is to have a pair of independent eyes that look after you. Follow up if you don’t receive confirmations or account statements. Remember, you have all the rights to this information. Not receiving these documents indicates a sign of trouble. So, be careful!
3. Ask Questions
It is essential to ask questions about the documents or information you receive about your investments. Ask questions if you don’t understand something. For example, sometimes, you will see unauthorized investments on your confirmations and account statements. In that case, you should communicate with your advisor or broker to analyze and fix the problems. Do not wait to see how your investments perform.
4. Get Access to your Online Account
If you don’t perform trading activities online, Safahi recommends registering or getting access to your online account. It enables you to review your account 24/7 and keep track of your investments.
You can verify the information sent by your advisor or broker and analyze your confirmations and account statements. You can also request them to send you confirmations or account statements via email.
5. Avoid Making Checks
According to Safahi, it is crucial to avoid making checks and other payments payable to your adviser, broker, or anyone else for your investment. In most cases, you should send money to your brokerage firm or another financial institution, such as a clearing firm.
Meeting with your investment professional and visiting the firm is significant because investments are important financial undertakings. It means you should have some degree of investigation and caution to streamline the process.
6. Conduct Independent Research
Conducting independent research on investments is an excellent way to keep track of your investments. You can read prospectuses, research reports, annual reports (Form 10-K), and quarterly reports (Form 10-Q) that companies make with the U.S Security and Exchange Commission (SEC). In addition, Safahi recommends accessing forms 10-K and 10-Q on the SEC official website.
7. Review Your Portfolio
Review your portfolio periodically and ensure your account’s securities meet your investment goals. According to Alan Safahi Orinda, it is crucial to understand and stay comfortable with your investments’ costs, risks, and liquidity.
Check the information on the file at your brokerage firm about your accounts as part of this review. Safahi recommends checking your new account agreements, margin agreements, discretionary account agreements, option account agreements, and other correspondences.
It is your right to know the information about you on the file. Ensure the brokerage firm’s records accurately reflect essential details about your age, income, financial status, net worth, long-term goals, and investment objectives.
Final Words
Tracking your investments is an excellent way to streamline your trading or business operations. If you see a mistake in your account or feel something is wrong, it is crucial to act quickly. Question any entry or transaction that you did not authorize. Good Luck!
Originally Posted: https://safahi.com/7-tips-to-keep-track-of-your-investments-17903f0504d2
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