Your August Financial To-Do List

It's time for some summer financial audits!

Ruth Saldanha 6 August, 2021 | 1:21AM
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Ruth Saldanha: Welcome to Morningstar. I'm Ruth Saldanha. Each month we discuss specific financial areas on which you should focus. This is your August financial to do list. August is traditionally a slow month a lot of us take time off to spend with our families. And if you have some time to spare, this is an ideal time to do some audits in your financial life. Morningstar's Director of Personal Finance, Christine Benz recommends that every investor should create an investor policy statement. For those of us that don't have one yet or don't know what one is, now is probably a good time to make one because like Benz says having a portfolio without an investment policy statement is a little like trying to build a house without a blueprint.

So to build your policy statement, include your financial goals with their time horizon, your asset allocation policy, your criteria for selecting investments, and the specifics of how and how often you plan to monitor it. Now if you already have a statement, it's a good time to review it. Next, do a quick portfolio check because you still have time to course correct if you've gotten off track, focus on the fundamentals of your plan and your portfolio, including the asset allocation, and whether your savings and spending rates are on track.

Finally, as always conduct a cost audit. Most of us don't pay too much attention to the dollars and cents that we're forking over to fund management trades and advice. These add up in a hurry. So spend some time reviewing these costs and if you can, reduce them. And don't forget if you can, enjoy the summer. Until next month, good luck.

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About Author

Ruth Saldanha

Ruth Saldanha  is Editorial Manager at Follow her on Twitter @KarishmaRuth.


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