How to Write an Investment Summary Letter

People who invest money are hoping to make a profit for short- or long-term goals. Short-term goals include saving for a used car or a family vacation. Long-term goals include saving for retirement or for a college education for children. Savvy investors regularly track their progress on short- and long-term goals. Writing an investment summary letter provides an accurate view of their progress. Investment summary letters also are helpful for informing others who are participating in the same investment, such as members of an investment club. Investment summary letters are straightforward and simple.

Instructions

1

Get statements for all of the investments you intend to cover in the letter. If necessary, request the statements from banks, credit unions, mortgage companies and other financial institutions. Request statements for the past 12 months.

2

Review the statements to analyze the performance or status of the various investments. Make comparisons to the same point a year ago and six months ago. For a savings account, note the amount on deposit a year ago and compare it to the amount on deposit six months ago, along with interest earned during the period. For an investment property, such as a duplex, note the estimated value of the property along and its cash flow status based on rental income and expenses, such as the mortgage.

3

Write the letter. In the first paragraph state that the letter is a summary of current investments. Then provide an overall summary of the investments based on your review of the financial statements. List the cumulative value of the investments 12 months ago, six months ago and currently. Use the second paragraph to explain unusual activity, such as a sudden drop in value of real estate investments because of the economy.

4

Complete the investment summary letter by making individual comments about each investment, based on the records.