Step 6: Review

No matter what your investment goal, it's important to get into the habit of reviewing your investment strategy and portfolio regularly. In particular you should revisit your strategy when there are significant changes in your life; for example you're nearing retirement, you become unemployed, you become a parent or you get a divorce.

Does your strategy still make sense today? You need to modify your strategy as economic and personal circumstances dictate. Right now your strategy may currently be to secure cash flow positive properties, but a change in your financial circumstances may mean that you should switch to looking for properties with the potential for capital growth.

Have your objectives changed since you last reviewed your strategy? Are there new liquidity needs or tax issues that should be addressed? These factors and others will play a part in deciding whether modifications to your strategy and existing portfolio are desirable.