Are my objectives still being met?

When you open your investment account, you and your adviser will define your investment objectives. You will also talk about how much risk you might want to take with your money. Then you choose a mix of investments that keeps risk to a level you're comfortable with. Just remember: every time you buy and sell, that mix can shift.

For example, if you sell off some money market funds and buy some stock from a fairly new company, your money has a chance of growing faster. But of course you will face more risk. On the other hand, if you sell your stocks and buy Canada Savings Bonds, there's a lot less risk. But your money may not grow fast enough to reach your goals. That's why it's so important to keep an eye on the mix of assets in your account and whether it continues to meet your objectives and your risk profile. You and your adviser also need to periodically review your risk profile to see if it still describes you.

Understanding asset mix: an example

Let's say your plan is to keep 40% of your money in stocks and equity mutual funds, 40% in bonds and 20% cash. But your most recent statement shows you now have 60% of your money in stocks and equity mutual funds because their value shot up. If things continue like that, you might want to talk to your adviser about adjusting your investment mix.

Many investors are surprised to see how much their accounts can shift over a year or two. Of course, if you have investments in more than one account, it gets harder to see the big picture. If your situation is really complicated, you may need professional advice to stay on track.