9 reasons you shouldn't check your investments more than once a month, according to financial advisors (2024)

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  • Investment apps have made it too easy to check your investments, financial advisors say.
  • Checking your investments too often could lead to emotional decision-making — and big losses.
  • Investing should be a long-term game, so choose companies and funds you can stick with.

9 reasons you shouldn't check your investments more than once a month, according to financial advisors (1)

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9 reasons you shouldn't check your investments more than once a month, according to financial advisors (2)

9 reasons you shouldn't check your investments more than once a month, according to financial advisors (3)

Investors have been on a wild ride over the last few years, and that's especially true of the stock market in 2020. The pandemic initially wreaked havoc on the economy, causing the Dow Jones Industrial Average to plunge to around 20,000 in March of 2020.

If you were investing in 2020 and closely watching the numbers, it would have been far too easy to panic completely, sell, and move your investments to cash at the worst possible time. Unfortunately, plenty of investors did exactly that, causing them to lose out on the astronomical gains the stock market has seen over the duration of 2021.

This is part of the reason financial advisors suggest only checking your investments once per month, once per quarter, or even less than that.

Why does it make sense to ignore the ups and downs of the stock market? We asked financial advisors to explain.

1. Investing is (or should be) a long-term game

Indianapolis financial advisor Thomas Kopelman says many millennials are using investing apps to track their portfolios more than once per day, but "this is not how it is meant to be."

Checking even the best investment apps too often turns investing into a game and can push people to make sudden changes based on media headlines and fear, he says. In the meantime, the time horizon for young (or even younger) investors is so long for retirement that they don't need to keep an eagle eye on daily market movements.

"The goal with investing is to find investments you truly believe in long-term and invest in them for a very long time," says Kopelman. "This is how you take advantage of compounding and build wealth."

2. Your investment strategy shouldn't change on a whim

Financial advisor Jeff Rose of Good Financial Cents says that, ultimately, your investment strategy should be directly correlated to your financial or retirement goals. If you have a plan in place and you've sought guidance from a professional to help put this plan in place, then the daily fluctuations don't matter, he says.

Rose compares constant investment tinkering to a 10-hour drive to the beach where you end up running into some rain along the way.

"Would you turn back and go home, or would you continue?" he asks, adding that he thinks most people would keep pushing forward since they hadn't reached their goal.

"That's no different in planning for your retirement and encountering a few thunderstorms along the way in the form of stock market volatility," says Rose.

3. You'll stress for no reason

Financial advisor Jordan Nietzel of Trek Wealth Planning also points out that checking your investments daily is a recipe for stress and anxiety. If your investment horizon is decades into the future, then daily, weekly, and monthly market movements are not important to the end goal, he says.

He adds, "Stay focused on the big picture and don't lose sleep over the inevitable ebbs and flows of the market."

4. Ignoring your portfolio helps you avoid emotional errors

According to wealth advisor Stephen Carrigg, the biggest reason to not check your investments more than a maximum of once per month is to reduce emotional errors. He points out that the market dips 5% or more on average a few times per year, and your emotions might tell you to sell on the darkest days.

If you listen to that voice, all you are doing is locking in a loss or a lower value than you had just prior.

"The best investors I know might look at their accounts once per month maximum," says Carrigg. "Set the plan, invest accordingly, and play the long game."

5. There's almost too much information out there

Financial planner Gregory J. Kurinec of Bentron Financial Group says individual investors have seen such a dramatic increase in access to information over the last 15 years, and that information has been used to empower people to make better, more informed decisions.

When it comes to the stock market and other investments, though, there is so much conflicting information that people feel overwhelmed, more unsure of themselves than ever, and more prone to experience FOMO (Fear of Missing Out).

If they take a step back and stop reviewing investments on a daily basis, they can let their long-term financial plan play out, says Kurinec. He also points out that billions of dollars were made by previous generations who took a long-term buy-and-hold strategy.

"This is a tried-and-true method to build and protect wealth," he says.

6. Young investors have a long way to go to age 59 1/2

If you're investing for your golden years, chances are good you won't even need your money for a while. Even if you're 40, for example, you will likely have a 20-year or longer runway to retirement.

Financial advisor Cameron L. Church of Sound Foundation Wealth Advisors also points out that most people need to wait until age 59 1/2 to withdraw money from their retirement plans without penalty anyway.

"For many of us, that could be several years out, and the markets are going to move a lot in that time," he says. "If you've done your homework or worked with someone to create a good long term investment plan, trust that it's going to work."

7. For most people, time is on their side

Plus, generally speaking, time is a major asset for investors who have plenty. This is especially true for individuals who have 15 years or longer before they plan to access their money, or before they'll really need to.

With that in mind, wealth manager Richard Cooke of Vincere Wealth Management points out that checking your investments daily is like planting an oak tree and digging it up every few days to check on the roots.

It's important to understand your time horizon and your risk tolerance, he says. Other than that, you should let time do what it's supposed to do and focus on the other important things in your life.

8. You are unlikely to outperform the market

Financial advisor David H. DeWitt of DeWitt Capital Management also points out a very inconvenient truth about investing — the fact that you probably won't "win" at the game you're playing anyway.

DeWitt says that firms like Dalbar report every year that the average investor performs significantly worse than the average stock market return.

"The only way this is consistently possible year in and year out is from making poorly timed buy-and-sell decisions, often fueled by emotions," he says. "The more you look at your investment account, the more you forget about the big picture, and the more susceptible you are to making a decision you may later regret."

9. Your best bet? Focus on what you can control

Finally, financial advisor Russ Ford of Wayfinder Financial says most people have limited time and mental energy to spend thinking about money. With that in mind, most people are a lot better off focusing on areas of their life where they actually have some say.

In the same way a fitness expert would tell you to spend your limited fitness time focusing on eating healthy food and working out more often, Ford says the majority of people would be better off focusing on saving and investing more each month. After all, putting away more money for retirement is going to be a good move regardless of what the market does over the next decade or two.

Better yet, Ford says to spend some of your extra energy reevaluating the rest of your financial life plan such as goal setting and life planning, tax planning, insurance and employer benefit planning, debt planning, education planning, and estate planning.

This article was originally published in November 2021.

Holly Johnson

Freelance Writer

Holly Johnson is a credit card expert, award-winning writer, and mother of two who is obsessed with frugality, budgeting, and travel. In addition to serving as contributing editor for The Simple Dollar and writing for publications such as Bankrate, U.S. News and World Report Travel, and Travel Pulse, Johnson ownsClub Thriftyand is the co-author of "Zero Down Your Debt: Reclaim Your Income and Build a Life You’ll Love."

9 reasons you shouldn't check your investments more than once a month, according to financial advisors (2024)

FAQs

9 reasons you shouldn't check your investments more than once a month, according to financial advisors? ›

How often should you check your investments? As a rule of thumb, check your investments every one to six months. Anywhere within that time frame will keep you up to date on your portfolio, without causing unnecessary stress. Some investors go with once per quarter as a happy medium.

How often should you check your investments? ›

How often should you check your investments? As a rule of thumb, check your investments every one to six months. Anywhere within that time frame will keep you up to date on your portfolio, without causing unnecessary stress. Some investors go with once per quarter as a happy medium.

How often should I check in with my financial advisor? ›

“There are years you talk to your adviser every month, and there are years when a single check-in is completely appropriate. I think 2-3 times a year is a good average,” says Jen Grant, a financial planner at Perryman Financial Advisory.

Why don't you need to check your stocks constantly? ›

Checking your stocks too frequently can lead to emotional investing and impulsive decisions, such as buying or selling based on short-term market fluctuations. This can lead to underperformance and missed opportunities for long-term growth. It can also cause unnecessary stress and anxiety.

How often do you monitor your portfolio? ›

Monitoring your investments

As the stock market constantly changes, it is important that you regularly review your portfolio (at least once a year), to ensure it is still in line with your goals.

What is the 90 10 rule in investing? ›

The 90/10 rule in investing is a comment made by Warren Buffett regarding asset allocation. The rule stipulates investing 90% of one's investment capital toward low-cost stock-based index funds and the remainder 10% to short-term government bonds.

Why should you monitor your investments? ›

An annual review can keep you engaged in your holdings while tracking the progress of your investment goals. It can also help you know when your asset allocation has shifted and it's time to rebalance your holdings.

Should I check my investments every day? ›

Checking your investments too often could lead to emotional decision-making — and big losses. Investing should be a long-term game, so choose companies and funds you can stick with.

Why stock picking is a bad idea? ›

The risks are too great with individual stocks

"They often don't know how to do due diligence or research companies. So they're often going to pick stocks without the information they need to make good decisions." Benz's original statement from June 2020 rings even truer in hindsight.

How do I stop checking my investments? ›

You should try to find other things that have a higher priority, or something that you enjoy doing. When you keep your mind occupied, you will spend less time thinking about your stocks. This will greatly reduce the number of times you check your stocks!

How often should you rebalance your portfolio? ›

It's a good idea to review your portfolio on a quarterly or annual basis. This reassessment may not lead to any activity, but at least you'll know you're on track. Checking in on your investments regularly can help you decide when to undergo a portfolio rebalance and stay up to date on your portfolio's performance.

How often should you check your net worth? ›

It's a good practice to calculate your net worth on a yearly basis.

How many times a year should I rebalance my portfolio? ›

Research from Vanguard shows there is no optimal rebalancing strategy. Whether a portfolio is rebalanced monthly, quarterly, or annually, portfolio returns are not markedly different.

Should I look at my stocks every day? ›

It's important to stay on top of your finances. But when it comes to retirement savings, it's possible to check your investments too much. In fact, many financial planners say you should only look at your investments every three months.

How often should an investor review their portfolio? ›

But many investors make it a habit to revisit their investment allocations annually, quarterly, or even monthly. Others decide to make changes when an asset allocation exceeds a certain threshold such as 5 percent. Research from Vanguard shows there is no optimal rebalancing strategy.

How often should your investment advisor contact you? ›

Every client is different, with unique communication needs and preferences. Some clients may prefer frequent updates, while others may only want to hear from you quarterly. Understanding the unique needs and expectations of each client is critical when determining the right communication frequency.

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