How to Do a Mid-Year Portfolio Checkup

Its been a nerve-racking year for investors.

Almost four months ago, expertsdeclared the end of the bull marketafter a series of drops.

Yet after the stock market plunged almost 35%, investors saw a speedy recovery.

The second quarterfinished strong, nearlyerasing the damagefrom February and March.

Now that the markets are holding steadyfor now, anywayit may be a good time for aportfolio checkup.

you might do it yourself by following these stepsfrom Morningstar.

But if your income has been steady, now is a good time toaddto your accounts.

While experts suggest building an emergency fund to cover three to six months of expenses, any amount helps.

Even $500 or $1,000 in asavings accountcould help you avoid using high-interest credit cards in a pinch.

Review your overall plan

Your investing goals are unique to you.

You may be saving and investing for a down payment, a college fund or for retirement.

Fidelity offers some basic retirement savings benchmarkshere.

After a high-level overview of your plan, you might review your portfolio.

you’re free to use MorningstarsInstant X-Rayfor a free breakdownaka your asset allocation.

This will show your percentages of stocks, bonds and cash.

If you dont already have aninvestment policy statement, consider writing one.

Your statement can serve as your roadmap for future decisions.

Morningstar has somesample portfolioshere, too.

After a volatile spring, your asset allocations may be off from their original benchmarks.

For example, when the stock market does well, your stock percentages may be too high.

Before making changes, though, always consider the tax consequences.