Throughout 2022, the market’s volatility has been a critical reminder of the importance of portfolio stability, consistency, and resiliency for individual investors. The new year is a few days away, and now is a key time to review your investment mix, confirm your long-term strategy, and get a head start on your financial wellness in 2023.

Take some time to wrap up the five items on our checklist before the end of the year:

Review your portfolio

With this year’s market turbulence and inflation reaching historic highs, the importance of proper portfolio diversification is more obvious than ever. If you haven’t reviewed and, if necessary, updated your portfolio’s allocation strategy, there’s no reason to wait any longer — make it a new year’s resolution to diversify towards long-term growth.

The “30+ rule” is one of the most useful and important pieces of financial insight for investors today. It’s simple: more than 20 years of data shows that an individual portfolio that’s at least 30% invested in “alternative assets” have handily outperformed portfolios of just stocks and bonds. Data collected from Bloomberg, S&P, J.P Morgan, and more, make it clear: portfolios that are overly reliant on traditional assets deliver lower returns and have higher volatility than portfolios that introduce alternatives like real estate and venture capital.

Private real estate is historically less volatile than the stock market and traditionally preserves its value during periods of high inflation. When reviewing your portfolio, consider rebalancing toward the 30% target by diversifying into additional investments like private market real estate, which has a low correlation with public securities.

Consider recurring or manual reinvestments

Did you earn a year-end bonus or raise in 2022? Depending on your financial circumstances, this month is a great time to set up recurring investments to help maximize your return potential over the long term.

Why does reinvesting matter? It can be one of the most powerful factors in building long-term wealth, thanks to the power of compound growth.

Our auto-invest feature allows you to easily schedule recurring, automatic contributions that help your account grow consistently. As a Fundrise investor, you can select the amount and frequency of your contributions, then we take care of the rest.

Contribute to your IRA

If you invest for retirement but aren’t diversified, your retirement accounts have likely felt the impact of the faltering public markets this year.

Mitigate risk and diversify your retirement savings by investing in Fundrise’s high-quality, private real estate assets through an IRA. There are three options for opening an IRA with Fundrise:

  • Transfer from an existing IRA.
  • Rollover from a 401(k) or other employer-sponsored retirement plans.
  • Make a new contribution.

For 2022, the IRA contribution limit for eligible individuals is $6,000 ($7,000 if you're age 50 or older). This yearly contribution limit applies across all IRAs in your name.

Update your account settings and/or tax withholdings settings

Did you get married, buy a home, or have a child this year? You may need to adjust your tax withholdings for tax year 2022.

This month is also a good time to ensure the information on each of your investment accounts is up-to-date and accurate for the new year. Be sure to confirm your beneficiary designations, payment methods (bank accounts, cards, etc.), phone number, and other profile settings.

Plan ahead for your 2023 financial priorities

The new year will be here before we know it. Take a few moments this month to jot down a financial new year's resolution or make a list of your investment priorities for 2023.

As a Fundrise investor, you can create a new goal, track your progress, and make adjustments directly in your account.*

When you set a goal on your Fundrise account, our platform will help you determine whether you’re on track to reach it within your stated timeline, based on your current growth rate and planned contributions. If there are steps you need to take to reach your goal on time, our platform will offer suggestions for how you can stay on track.