Q1 Investment Checkup: What to Review Right Now for 2026

The start of the year often feels like a return to normal rhythm. Holiday activities fade away, calendars fill back up with important events, and daily chores return to being the norm. January also brings a natural pause, one of the few times of the year when tax preparation begins to take shape, financial goals are set or revisited, and investment strategies may need updating. 

The first quarter of the new year is an ideal time to step back, take stock, and update your investment strategy with a purposeful review of your intentions for the new calendar year. 

One of the most frequently asked questions that our iWealth financial planners receive this time of year is simple and complex: 

Should I make any changes to my current investment strategy?

The answer isn’t about reacting to headlines or making sweeping changes. It’s about confirming that your plan still aligns with goals and that minor issues don’t quietly escalate into larger problems later in the year.

Below are the key areas that our iWealth financial planners in Minnesota often review during a first-quarter investment checkup with our clients, and why each one matters for 2026.

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Are my investments still aligned with my needs in 2026?

Think of your investment plan like a calendar, not a scoreboard. What matters most is timing. Money you’ll need sooner than later should be treated differently from money meant for your early, mid, or late retirement years.

A Q1 checkup is a good time to revisit how your invested assets align with your short-term spending requirements in 2026 

• Are there significant withdrawals planned for this year? 
• Will there be any large purchases (second home)?
• How about funding college education for children? 
• Will there be any significant changes in income?

Even if your long-term strategy hasn’t changed, short-term needs can affect how assets are invested for liquidity and long-term growth.

This is where working with the iWealth team of Minnesota based financial advisors can help you develop an investment strategy that enables you to pursue your short, intermediate, and long-term goals. This means you have the right amounts of money in the proper accounts. 

For example, assets that will fund short-term needs are invested in money market funds, while assets that fund long-term needs are invested in stocks, bonds, and other assets that may appreciate over time.

Has my asset allocation drifted?

Asset allocation is one of those aspects of an investment plan that can change without you taking any action. Markets move, different investments perform at various levels, and over time, they can quietly alter how much investment risk you are exposed to. 

Assets that performed well may now represent a larger portion of your portfolio than initially intended, while others may play a more minor role than planned. This is why many investors ask early in the year: 

Do I need to rebalance my portfolio with the goal of ensuring it aligns with my risk tolerance? 

A first-quarter review creates a timely opportunity to conduct a strategic portfolio review, so you don’t make hasty changes in response to short-term market movements.

Rebalancing isn’t about guessing what markets will do next or chasing short-term performance. It’s about realigning your portfolio with how it was designed to function, based on your goals, time horizon, and comfort level with financial risk. 

In some years, that may mean making substantial adjustments based on what happened in the previous calendar year. In other years, it may confirm that everything is still within an acceptable range that you are comfortable with.

At iWealth, we use the first quarter of the year as a checkpoint to determine whether allocation drift has meaningfully changed your portfolio’s risk profile, or whether minor, thoughtful adjustments can help restore balance without disrupting a broader strategy.

Am I taking the right amount of risk for my current financial situation?

Risk tolerance is often viewed as a psychological predisposition; however, in reality, it should evolve in line with your life and current financial circumstances. What felt comfortable last year may feel very different today as you approach your anticipated retirement date. 

Changes in income, responsibilities, or time horizon can all influence what level of risk feels comfortable in the coming year.

Events such as a promotion, career change, growing your family, or approaching retirement can reshape how risk fits into your overall financial plan. A first-quarter investment checkup provides an opportunity to step back and assess whether your current level of risk remains aligned with your current circumstances, which isn’t limited to being one year older or recent market performance.

Our advisors in Minnesota help clients across the country by approaching this conversation from a practical standpoint rather than a theoretical one. There can be a significant difference between your capacity to take risks and your evolving risk tolerance. How you have reacted during market swings in the past provides valuable information. If volatility leads to sleepless nights or emotional decision-making, then those responses matter just as much as long-term projections for pursuing long-term goals. 

Reassessing your risk exposure isn’t about avoiding movement in the securities markets. That is a regular part of the process. It’s about aiming to ensure your investment strategy still aligns with the life you’re living now and want to live in the future.

How did my investments actually perform last year?

Performance reviews don’t need to be complicated to be useful. The goal isn’t to compare yourself to the Dow Jones or S&P; it’s about understanding what worked, what didn’t, why, and what actions need to be taken.

Q1 is an ideal time to review prior-year results with context:

• Which parts of the portfolio produced the best results? 
• Were returns consistent with the role each investment plays? 
• Did any holdings behave differently than expected?
• Should any investments be liquidated and the proceeds reallocated?
• Are there any tax loss harvesting opportunities?

At iWealth, performance reviews are often framed as learning opportunities. Keeping score helps you stay grounded and reduces the temptation to make short-term, emotional decisions based on recent market performance.

Are my investments consistent with my current tax situation?

Taxes often become a focus only after the year is already underway, or worse, when it’s time to file in April. A first-quarter investment portfolio checkup can help illuminate potential tax considerations earlier in the conversation, when there is still time to be thoughtful and proactive about how investment decisions may impact your overall financial picture in 2026.

Reviewing investment accounts through a tax lens typically involves examining where assets are being held in taxable accounts. Or, distributions from tax-deferred accounts. This often involves assessing your mix of taxable and tax-advantaged accounts, understanding potential capital gains exposure, and reviewing how distributions may impact your taxable income. 

It can also include identifying opportunities created by gains or losses that may provide flexibility later in the year. Even modest adjustments in Q1 can influence cash flow, timing of buys and sells, and flexibility for the months ahead.

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Do my accounts still reflect my current priorities?

The more money you have, the more complex your financial choices. For example, previous employer plans, multiple brokerage accounts, inherited assets, or stock bonus plans create the need for more complex decision-making.

A Q1 review is a good opportunity to look back and ahead to assess whether your account structures and allocations still address your current needs. A comprehensive plan often makes it easier to stay on track, measure your results, and understand how decisions in 2026 will impact your financial future.

For many people, this review isn’t about changing investments; it’s about making sure nothing has changed that could impact how your assets are invested.

Ready to learn more about iWealth’s investment checkup review process? Schedule a complimentary call with our team today.