With the start of a new year, it’s a natural instinct to assess your financial standing and reflect on how it has evolved over the last 12 months. In fact, this is an opportune time to compile your annual net worth statement. To calculate your net worth, tally up your significant assets, including the value of real estate, retirement accounts, automobiles, bank accounts, and other investments. On the flip side, total your debts, encompassing credit card balances, student loans, mortgages, car loans, etc. By deducting your debts from your assets, you arrive at your household net worth. Alternatively, you can leverage personal finance apps that automate this calculation by linking to your personal accounts.

Following this calculation, you might discover that your household net worth is negative, especially if you’ve recently graduated from college or a trade school financed by student loans. While individuals in such situations may experience a negative net worth, for many of us, a positive net worth is common, reflecting growth over the past year. This positive trajectory often results from savings and favorable investment performance.

After completing this process, consider deleting any apps from your retirement and investment account providers, especially if they gamify investing and encourage additional funds into recent high-performing stocks or ETFs. While it might seem counterintuitive, especially during a period when the S&P 500 is approaching its all-time high, removing such apps can help avoid impulsive decisions driven by short-term market trends that may not align with long-term financial goals.

Why delete an app that enhances financial tracking and action-taking? Simply put, these apps may prompt more frequent balance checks and trading, but increased trading doesn’t necessarily lead to better portfolio outcomes. Decades of research by DALBAR, as outlined in the Quantitative Analysis of Investor Behavior report, consistently reveals that individual investors underperform market indices. This underperformance is primarily attributed to poor market timing rather than investor expenses.

The human mind, while remarkable, is not well-suited for making good long-term decisions in the face of fluctuations that can trigger fear in declines and greed in rallies. Reacting to these emotions often leads to detrimental actions, such as selling stocks after a market dip or buying after a rally, hindering progress toward financial independence.

Strategic investing is crucial, but consistent monitoring isn’t necessary for success. Collaborate with a financial adviser or use your resources to create a household investment plan, outlining your ongoing investment preferences. This plan, often referred to as an investment policy statement (IPS), should specify your allocation between stocks, bonds, and cash, as well as the circumstances triggering portfolio rebalancing. Periodic reviews — quarterly, semi-annual, or annual — are sufficient, discouraging daily or weekly monitoring.

If you’re still hesitant to remove investment apps from your smartphone, consider the security risk. And remember, if you adhere to a long-term investment approach and avoid frequent updates from financial apps, it can help enhance your overall investment experience.

David Gardner is a Certified Financial Planner™ professional at Mercer Advisors. Opinions are his own and are not intended to serve as specific financial advice.