While everyone is busy making predictions about what the market will do this year, I think there is something more useful you can do right now. Take 10 minutes to review your portfolio.
I do this every January. It is simple, but it helps me catch things I would otherwise miss. Here is my 8-point checklist.
Portfolio Structure (Steps 1-4)
Check your asset allocation
Has one position grown too big? A stock that was 5% of your portfolio might now be 15% after a strong year. That is not necessarily bad, but you should be aware of it and decide if you are comfortable with that level of concentration.
Review your geographic diversification
Many investors are heavily weighted toward US stocks without realizing it. I am currently around 95% invested in the US myself, and I am fine with that because I have full conviction in it. But you should ask yourself whether that is the right choice for you. I wrote more about this in my article on what a crisis taught me about diversification.
Look at your cash position
Do you have enough in your emergency fund? Or do you have too much cash sitting idle that could be working for you? My approach to cash has changed over the years. I used to invest everything I had, staying cash-poor. Now I am building up some cash reserves to have optionality. It helps that I am earning 6% interest on my cash, so it is not just sitting there doing nothing.
Audit your fees
Check the expense ratios on your ETFs and funds. The difference between 0.1% and 0.4% might seem small, but over decades it adds up significantly.
On a €10,000 investment compounded at 10% per year over 30 years, the difference between a 0.1% and 0.4% expense ratio costs you around €25,000. Same investment, same returns, but €25,000 less in your pocket because of a fee you barely noticed.
| Metric | Low Fee (0.1%) | High Fee (0.4%) |
|---|---|---|
| Starting investment | €10,000 | €10,000 |
| Annual return | 10% | 10% |
| After 10 years | €25,600 | €24,800 |
| After 20 years | €65,000 | €61,200 |
| After 30 years | €164,000 | €149,000 |
| Money lost to fees | €0 | €25,000+ |
Optimization and Admin (Steps 5-8)
Review your broker
Are you still getting a good deal? Check your commissions, FX fees, and the features you actually use. New brokers and pricing models launch all the time. Platforms like Lightyear have shaken up the fee landscape significantly. What was the best option two years ago might not be anymore. If you are unsure, take a look at my broker comparison for 2026.
Optimize your dividend income
If you hold US stocks or ETFs that pay dividends, make sure your broker has enabled the W-8BEN form for you. This lowers your US withholding tax from 30% to 15%. If you are in distributing ETFs, reinvest those dividends immediately. Some brokers like Trading 212 and Interactive Brokers offer DRIP (Dividend Reinvestment Programs) that do this automatically.
Consolidate old accounts
Do you have old pensions, savings accounts, or investments scattered across different platforms? This is a good time to bring everything together so you have a clear picture of your total net worth.
Download your 2025 statements
Keep your records organized for tax purposes and to track your progress over time. Most brokers make annual statements available in January.
That is it. Nothing complicated. But going through this list once a year keeps me on track and helps me avoid mistakes that cost money.
Frequently Asked Questions
At minimum, once a year. I do a full review every January, but checking in quarterly is also a good habit. The goal is to catch drift in your allocation and fees without obsessing over daily market moves.
The W-8BEN is a tax form that reduces the US withholding tax on dividends from 30% to 15% for non-US investors. If you hold any US stocks or ETFs that pay dividends, make sure your broker has this enabled. It makes a real difference over time.
A common guideline is 3 to 6 months of living expenses. Beyond that, consider keeping some additional cash for investment opportunities. The key is to earn a decent interest rate on your cash so it is not losing value to inflation.
Disclaimer: This article is for educational purposes only and does not constitute financial advice. When investing, your capital is at risk. You may get back less than you invested. Past performance is not a guarantee of future results.
