Declutter & Simplify Your Portfolio in 2025

As we step into a new year, many of us set ambitious resolutions—exercise more, eat healthier, or reconnect with loved ones. But how often do we think about cleaning up our financial lives?

Let me ask you this: Is your portfolio working for you, or does it feel like a tangled mess that’s holding you back? Simplifying your investment portfolio might be the best resolution you make this year. Why? Because clarity breeds confidence, and confidence drives results.

Why Simplify?

Think about the clutter in your everyday life. A messy desk can make it hard to focus. A chaotic closet makes it difficult to find what you need. The same goes for your investments. A complicated portfolio, full of overlapping funds and unnecessary complexity, can distract you from your long-term goals. Worse, it might discourage you from reviewing and maintaining it altogether.

And let’s not forget your loved ones. If something unexpected were to happen to you, would they be able to easily understand and manage your investments? Simplification isn’t just about making your life easier; it’s about protecting those you care about.

Three Strategies to Simplify Your Portfolio

If you’re feeling overwhelmed, don’t worry—simplification doesn’t mean sacrificing returns. In fact, a streamlined portfolio can often outperform a complex one. Let’s explore three actionable strategies you can implement today:

1. Swap Actively Managed Funds for Index Funds

Actively managed funds promise market-beating returns, but they often come with high fees and unpredictable results. Index funds, on the other hand, are designed to track the market, not beat it. They’re passive, low-cost, and reliable—no key-person risk, no strategy surprises, and far less monitoring required.

Ask yourself: Is chasing market-beating performance worth the time and energy? For most investors, the answer is no. Instead, consider high-quality index funds like:

• Domestic Stocks: Schwab U.S. Broad Market ETF (SCHB), Vanguard Total Stock Market ETF (VTI), or iShares Core S&P Total U.S. Stock Market ETF (ITOT).
• International Stocks: Vanguard Total International Stock ETF (VXUS) or iShares Core MSCI Total International Stock ETF (IXUS).
• Bonds: Vanguard Total Bond Market ETF (BND) or iShares Core Total USD Bond Market ETF (IUSB).

2. Choose Broad Market Equity Funds Over Niche Products

Let’s face it: owning a collection of style-specific funds can quickly become a headache. One fund for growth stocks, another for value stocks, one for small caps, another for large caps… Before you know it, you’ve got a pile of funds with overlapping holdings and little strategic purpose.

Simplify by opting for broad all-market funds that give you exposure to the entire market in one fell swoop. With a single fund, you can capture the performance of thousands of companies, spreading risk while cutting down on complexity.

3. Delegate with a Target-Date or Allocation Fund

If managing your portfolio feels overwhelming, why not let someone else do the heavy lifting? Target-date funds or allocation funds adjust their asset mix over time, automatically rebalancing to align with your goals and risk tolerance.

Think of it as putting your investments on autopilot. These funds are particularly effective for retirement accounts, where the focus shifts from growth to preservation as your target date approaches. It’s a hands-off approach, but with expert management behind the scenes.

Simplification Is a Gift to Yourself and Your Family

Streamlining your portfolio isn’t just about making your financial life easier—it’s about setting yourself up for success. It’s about ensuring that you stay focused on your goals and that your wealth can be easily managed and passed on if necessary.

As a financial advisor, I’ve seen the transformation that comes from simplifying portfolios. Clients tell me they feel lighter, more in control, and better prepared for the future. And isn’t that what we’re all striving for?

Your Next Step

Now’s the time to take action. Start by reviewing your current portfolio and asking yourself:

• Are there funds you no longer understand or need?
• Do you have overlapping investments?
• Could you benefit from switching to low-cost index funds?

At Unbroken Investing, we specialize in helping investors like you simplify and optimize their portfolios. Let’s work together to create a financial plan that’s not just effective but also easy to maintain.

Because when your portfolio is clear, your path to financial freedom becomes clear, too.