3 reasons to keep track

Step 7 to investing is tracking your progress against your goals so you can make any necessary adjustments along the way.

1. To know how your investments are performing

Check the accountAccount An agreement you make with a financial institution to handle your money. You can set up an account for depositing and withdrawing, earning interest, borrowing, investing, etc.+ read full definition statements for all of your investments every month so you know how much you’ve earned towards your goals. You can also compare your returns with those of similar investments in a benchmarkBenchmark A yardstick that you can use to measure the performance of an investment. Example: a stock market index may be a benchmark you can use to compare how well your own stocks are doing.+ read full definition indexIndex A benchmark or yardstick that lets you measure the performance of a stock market, part of a stock market or a single investment. Examples: S&P/TSX, S&P/TSX Canadian Bond Index.+ read full definition. If you’re not sure what index to use, you may want to ask an adviser.

2. To know what you’re paying in fees

Your account statements will also tell you about your costs and fees. Any fees you pay will lower the return you make on your investments. If you think you may be paying too much in fees, find out if there are lower-cost alternatives that may be appropriate for you.

3. To adjust your portfolio if you need to

Monitor your investments to check if they are helping you reach your goals. If not, you can make changes sooner rather than later.

Key point

6 steps to investing:

  1. Set your goals
  2. Know your investing personality
  3. Create your plan
  4. Choose your asset mixAsset mix The percentage distribution of assets in a portfolio among the three major asset classes: cash and cash equivalents, fixed income and equities.+ read full definition
  5. Choose your investments
  6. Track your progress

Take action

  1. Know how your investments are performing
  2. Know how much you’re paying in fees
  3. Know when it’s time to make changes
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