What Investors Resolve to Do in the New Year

The end of the calendar year is a time of reflection for many investors. It's a time to review the performances of individual investments and of our portfolios overall. But in addition to looking back, it's also a great time to look ahead to the future and to identify things we'd like to do differently--or to continue doing well--in 2015 and beyond.

We asked Morningstar readers about their investing New Year's resolutions for 2015 and, as they've done all yearlong, they responded with a lively and interesting discussion, encompassing a broad range of viewpoints. You can read the full conversation here, and you'll find a selection of excerpts below.

Rebalancing, Simplifying--and Having Fun
Responses from readers were largely split between those who feel the need to make changes and those who don't. Many of those seeking change described fixes tied to their own investing habits.

DBSMichigan said, "When I get exuberant and forget basic overall portfolio balance, it eventually bites. So for 2015 I'm resolved to rebalance appropriately for this stage of the cycle. As the Santa rally eases would be a good time to start."

Khollingshead wrote, "My resolution: 90% discipline, 10% learning and fun. Maintain 90% of my retirement account in my asset allocation of mutual funds with an annual check for rebalancing. Invest up to 10% of the account in themes that are fun and interesting, and maybe can teach me something."

Some readers rattled off lists of resolutions they plan to live up to in the new year, including phil56, who said his goals include: "Invest some extra cash via dollar-cost averaging into balanced funds that minimize taxes. Add to [a] Roth [IRA] and put as much as possible into the regular 401(k). ... And stay away from individual stocks as I have all these years."

Others were more succinct about their objectives.

"Sell some of my funds and get out of high risk and into more conservative funds," said jhamlin.

"Use more index funds for domestic stocks. Also reallocate into the (relative) values in this pricey market--i.e., muni bonds and international equities," wrote Rohit33410.

For willt65, the new year offers a new opportunity to simplify his holdings.

"For 2015, I hope to consolidate my portfolio and whittle it down to a more manageable number of funds while still keeping a proper asset allocation for my situation," he wrote. "I seem to have become a fund collector over the past few years with some unnecessary overlap."

Portfolio management was on the minds of several readers, including audreyh1, who plans to take a new approach to rebalancing her portfolio in the coming year.

She wrote, "We set up a donor-advised fund [DAF] for charitable gifting in 2013. I just realized that if I take advantage of the DAF when rebalancing my portfolio at the beginning of each year, I can save myself part of the tax pain that comes from rebalancing. Fidelity Charitable makes it easy to gift mutual fund shares directly from a brokerage account to the DAF. Several other financial institutions do as well."

Then, there was homebrewer, whose investing resolution for 2015 is to "follow my sell rules."

He explained that this means that "if a holding falls below the buy point [by] more than 7%: sell. I have watched some stocks purchased for dividends fall below that mandatory sell point and held onto them thinking 'I am still getting the dividend' only to have the company cut or eliminate the dividend." Another of homebrewer's resolutions: "Listen to my wife as she sees trends before I do or even some of the experts."

Staying the Course (and Steering Clear of Bonds)
For all the talk of change from some readers, others pledged to stay the course and not to waver from approaches that have worked well for them this year and in years past.

Retiredgary said, "My main resolutions are to be true to our strategy of diversification and taking a long view, to spend time on investments only when I need to, and to continue ignoring both experts and people who have something to sell."

One reader vowed to continue sticking to a stock-only diet.

"Call me crazy--I have not and will not buy bonds. Yup, for the past 45 years or so, my 100% quality equity investments have done very well indeed," Nightrider said. "The dividends I get will outperform any bonds I can hold in my investment mix. Lucky? If prudence and due diligence are lucky, so be it."

Also leery of bond exposure is BMWLover.

"We have been overweight equities and have focused on holding quality stocks, especially in the health-care sector, and stopped trying to time the market," he wrote. "... I will also continue to minimize our exposure to fixed-income securities and cash as I do not see them generating positive returns compared to inflation. For yield, I plan to focus on high quality stocks that are paying reasonable yield to provide us with the liquidity we want."

Other readers said that sticking with fund families that have served them well remains the order of the day.

Festus said his or her New Year's resolution is to, "Buy and hold my American Funds like always ... with no regrets.

For ColonelDan, it's "Stay the course with Vanguard and continue putting my faith in the Wellington Management team's mutual funds."

Among those promising to do nothing different in 2015, yogiman may have put it best, writing, "My resolution is don't just do something, stand there. Keep my hands off my portfolio!"

Keeping an Eye on Taxes, Spending--and the Altar?
Aside from investing changes or nonchanges, some readers mentioned other developments they expect to affect their finances in 2015.

MitchMiller said that for him the new year means, "Relocating from California, which has a state income tax and where capital gains are taxed as income, with the highest marginal rate at 13.3%, to Nevada, where there is no capital gains tax and no state income tax. I'm amazed so many people are concerned about fund fees while ignoring the long-term, compounded implications of state income taxes."

"My resolution is to get a grip," wrote danielle. "We blew our budget out of the water last year with a second home purchase, major (first) home renovations, and travel. Now it's time to steady the ship a little. Spending is fun but for most of us it can only go on for so long. So we'll be better this year--promise!"

Last but not least, there was JHAsheville, whose resolutions cover everything from the markets to matrimony.

The commenter wrote, "The resolution we have is to stay the course with the [60% stock/40% bonds] portfolio we have, continue to sleep well at night, put some spending breaks on after we complete a January renovation in a 'new' older home we purchased two years ago, replenish our 'buckets,' and decide if, after 24 years of commitment, it's time to bite the bullet (tax and otherwise) and get married!"

Some comments have been edited for clarity and brevity.