Four percent. In some contexts, it is statistically insignificant. When it comes to your portfolio, your finances, your hard-earned money, though, four percent is not only significant — it is a game-changer.

What Goes Up…

Don’t mess with success. The Dow’s hovering around 25,000, and you’re finally seeing some positive returns. Why change anything? Because the market is not static, and, yes, what goes up must come down.

Pundits are saying the market is over-valued and due for a stock market crash, yet it goes up. The markets are flashing warning signs (leading indicators) that growth could slow in the second half of 2018. A crash may be on the horizon; are you prepared?

Now Is the Time to Review

Are you over-diversified? Getting weighed down with duplication or overlap? Are there gaps in your investment strategy? I’m 100% certain you think you’re ok. I’m also 100% certain more diversification, which was the response by financial advisors to the last stock market crash is not the answer. Only avoiding loss by getting out of stocks would have helped.

Here’s why these answers matter: in the 30 worst years of the stock market’s history, earning just 1, 2, or even 4 percent more makes a tremendous difference.

(source: http://www.forecast-chart.com/historical-dow-industrial.html / Squire Asset Management)

Say you save 4 percent by reducing or eliminating “drag,” or underperforming investments. Rather than $465,000 in your retirement savings, after 30 years you could potentially have closer to $1,590,000 if you can figure out a way to eliminate drag and add 4% per year.

Statistically Insignificant?

Could 4% could be considered statistically insignificant? Not if it means you could:

• Retire years earlier
• Put your children through college
• Travel the world
• Buy a cottage
• Volunteer and donate to your favorite charities
• Be there for your children and grandchildren when they need you

What Difference Could it Potentially Make for You?

Again, an extra four percent in your returns can be the difference between working five more years, struggling to put the kids through college, or sitting at home on your porch when the world outside beckons and meeting the next phases of your life with confidence — and with the resources you need.

Your money should be working harder, and smarter, for you. You owe it to yourself to maximize the benefit of your investments. Just because the market is high today, doesn’t mean it will be tomorrow. Just because you have more than you’ve ever had, it doesn’t mean your portfolio is performing well or “safe.”

What might more do for you? If you can make changes that improve your results the question will be “What will I do?”