Your investment statement is supposed to provide clarity but too often, it does the opposite. What starts with a simple beginning and ending balance quickly becomes a maze of line items, legal disclaimers, and industry jargon. Many investors skim or ignore them altogether, missing key indicators that can reveal hidden fees, performance drag, or portfolio misalignment. Here are five key areas to pay attention to the next time you receive your statement.
1. Portfolio Performance
It’s tempting to zero in on your portfolio’s return each month, but that number can be misleading. Monthly or even quarterly statements are just snapshots, they don’t reflect the timing of deposits, market swings, or your long-term strategy. What truly matters is how your portfolio performs over time. To get a clearer picture, focus on trends across90-day periods rather than isolated reports.
2. Fees and Performance
One of the most important line items, and one of the most misunderstood, is fees. Look for advisor fees, transaction costs, and custodial charges. But even more importantly, watch for what’s not on your statement: fund-level fees inside mutual funds, ETFs, annuities, or alternative asset funds. These internal expenses can quietly eat away at your returns without ever being explicitly disclosed.
3. Asset Allocation
Do you actually know what you own and how diversified you really are? Having multiple ETFs or mutual funds with different names doesn’t mean you’re diversified if they all own similar underlying securities. Asset allocation is critical for understanding your market exposure, expected volatility, and long-term risk profile.
4. Contributions, Withdrawals and Cash Flow
This section helps you track where your money is going and whether anything looks off. Are there any unusual distributions? Is too much cash sitting idle? This is where inappropriate cash movement or excessive trading might show up and where you can ensure your investments are aligned with your goals and timelines.
5. Taxable Events
Some statements will include realized gains, interest income, or other taxable events. It’s worth reviewing these to avoid surprises during tax season and to plan accordingly with your advisor or CPA. Keep an eye out for unintended short-term capital gains or recurring distributions that might be avoidable.
Bonus Tip: One of the most important things to look for… is to not look all the time. Constantly checking your account day-to-day or week-to-week can lead to unnecessary stress and short-term thinking. If you’re a long-term investor, you should expect fluctuations but that’s not the same as worrying over them.
Need help interpreting your statement?
At JL Bainbridge, we provide clear, tailored reporting and are always available to walk you through the details. If you have questions about your investment statement or how your portfolio is really performing, contact your JL Bainbridge Advisor, we’re here to help!
The views and opinions expressed in this article are those of JL Bainbridge & Co and are subject to change and reflect our judgment as of the publication date. Investment Advice is only available to those who become clients. The JLB promise refund is based on client satisfaction and not a guarantee of any performance benchmark.
*JL Bainbridge is a registered investment adviser. Registration with the SEC does not imply any level of skill or training. JL Bainbridge is not a broker-dealer and does not offer tax or legal advice. Please consult your taxor legal professional for assistance regarding your individual situation. For more information about our firm and our investment adviser representatives, please review our Disclosure Brochure (ADV Part 2A), Privacy Notice Link, and Relationship Summary (Form CRS) at jlbainbridge.com or reference the SEC website for more information on the firm and its advisers at: https://adviserinfo.sec.gov/firm/summary/108058.
Investing involves risk, including the potential loss of principal. Market conditions and events can cause stock prices to fluctuate rapidly and unpredictably. Past performance is not indicative of future results. CS25
