Understanding Your Entire Portfolio
Many investors tend to focus on one investment account at a time. They review the performance of their 401(k), check their mutual funds' returns, and then review their brokerage account. While this approach provides useful information, it doesn't recognize that all investments are part of an integrated portfolio. And it doesn't recognize that your investments are only part of your total financial picture.
For example, suppose your company has been doing well and you've invested a significant portion of your 401(k) in the company's stock. In addition, you've exercised stock options and now hold a significant number of your company's shares in your brokerage account. Plus, you've invested in a mutual fund that focuses on your employer's industry, and the fund owns shares in your company.