How to Manage Your Investment Portfolio Better

How to Manage Your Investment Portfolio Better

The last pandemic had an enormous economic impact, and the whole financial world is still reeling from the blow. Many companies have dropped in value; investment portfolios have lost money; millions of people have lost their jobs; and individuals have depleted their retirement funds faster than projected. However, the world is recovering and a lot of things are back to normal, there is renewed optimism for economic revival. But, the experience has thrown many people into confusion on how best about their investment management. As a portfolio management Sydney, we have prepared this article to give you clarity on managing your investment portfolio. 

Here are some practical strategies to boost the success of your investment portfolio:

Reassess your portfolio

For market participants, the period from 2020 to 2022 has been turbulent for investment management. In several situations, it was discovered that investment portfolios composed of stock holdings had suffered significant losses in portfolio values. However, rebalancing your portfolio can help you overcome these losses and guarantee your portfolio performs well beyond 2022. The first step is to figure out how much money you have in taxable and non-taxable accounts, including retirement savings plans. If you are married, add the balances of your spouse’s accounts as well to determine how much of your holdings are dispersed in stocks, bonds, cash, and other marketable securities. Investigate the segmentation of target-date funds or mutual funds across these distinct market securities. Determine the percentage of each stocks, bonds, and cash in your portfolio. Next, consider if your holdings in these categories correspond to your risk profile and life-stage. For example, if you have 70% of your portfolio in stocks and your risk tolerance is just 50%, it is time to restructure your portfolio by selling your best-performing equities and reinvesting the proceeds in bonds and cash. If it still sounds confusing, reach out to us at Omura Wealth Advisers to help your scale through the hurdles of investment portfolio management.

How to Manage Your Investment Portfolio Better

Lower investment taxes

The pandemic depleted the investment portfolios of millions of people. If you sold part of your high-performing assets from taxable accounts to bridge the income difference in the previous year, you must pay taxes. You will be charge ordinary income tax rates on assets held for less than a year. However, you can use measures such as tax-loss harvesting to reduce your tax bill. According to this strategy, you can sell underperforming stocks at a loss to offset capital gains and decrease your tax liability. However, you must carefully read the terms and circumstances of tax-loss harvesting to guarantee that you use this technique to your benefit. Also, if you are retired, you need to be especially cautious since capital gains might boost taxes on your Social Security income.

Raising Your Yield

Gaining a return on your investment portfolio might have been difficult in 2022. Long-term interest rates, on the other hand, have shown no indications of recovery, and when combined with inflation, your portfolios may be losing value. However, it is critical to make the appropriate decisions in order to strike a balance between yield and risk in 2022. You can select corporate bonds with a minimum yield of 1.78% and with a good credit grade. You can also explore investing in ETFs (Exchange Traded Funds) with a high credit rating, as well as some government mortgage bonds, which serve to manage volatility while providing a high yield. However, if you have money in taxable accounts, consider investing in municipal bonds, which provide interest income that is tax-free. Municipal bond interest profits are sometimes free from state and local taxes.

Improved retirement savings strategies

If you saved a lot of money for emergencies before now, you might want to put it to good use in 2022. According to account reports, despite the fact that the COVID-19 epidemic created a financial depression, many still maintained a large cash reserve for emergencies. Any extra cash reserves should be invested in approved retirement savings schemes by the end of 2022. If you are 50 or older, you can contribute an extra $6,000 in catch-up contributions. These limitations are projected to stay unchanged in 2022. You can put any extra money into your employer-sponsored plan, and you should aim to raise your percentage of contributions in future years until you reach the maximum. Alternatively, if you do not have an employer-sponsored plan, such as a 401(k), you can invest in an IRA (Individual Retirement Account). You can contribute $6,000 to an IRA, or $7,000 if you are 50 or older. The sooner you invest, the better.

How to Manage Your Investment Portfolio Better

Choose cutting-edge innovations

2022 has been the year of recovery and discovery. Because of the increasing digitalization and progress across industries from 2020, it is important to concentrate your portfolio on a few new-age stocks. In the next few years, these firms have the potential to generate bigger returns. As a result, putting some money into these firms with high return potential (according to reliable sources) might be beneficial to your investment portfolio. According to studies, some of the high-paying businesses of the future include genome sequencing, robots, artificial intelligence, energy storage, and block-chain technology.


Following a turbulent 2020, investors are optimistic that the 2022 and beyond will provide the best returns. Although there has been recovery across several sectors, but it hasn’t been as much as expected. Many people still don’t know what to do about their investment portfolio management. It will be better to consult a competent financial advisor to ensure you are completely prepared to capitalise on opportunities and improve the overall performance of your investment portfolio for the foreseeable future. Contact Omura Wealth Advisers today to help you plan your investment management, we are an Australian investment portfolio management company that offers unparallel services to clients across the country.

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