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New Year Review: How to Start the New Year as an Investor

5 min readCompound

Key takeaways

The best New Year investment decision is not to predict markets — it is to sit down for an hour, review your portfolio, and set up automation for the whole year.

Step 1: Check your allocation

Open your portfolio overview and compare actual weights with targets. A year of market fluctuation may have shifted equities from a planned 70% to 80%, or the reverse. If the deviation exceeds 5 percentage points, it is time to rebalance — sell the excess asset or redirect incoming deposits.

Tip: the simplest rebalancing does not force you to sell — just direct new deposits into the underweight component until the weights even out.

Step 2: Check fees and providers

Step 3: Tax overview

In the Czech Republic, a three-year holding period applies to securities (including ETFs) — gains from a sale after three years are exempt from income tax. A value threshold of CZK 100,000 of annual sales proceeds also applies. Check what you bought three or more years ago and consider whether it makes sense to time any rebalancing to meet the holding period test. Note that this is not tax advice — verify your specific situation with an accountant. Details are in the ETF tax overview for the Czech Republic.

Step 4: Set up automation for the whole year

A regular monthly deposit set as a standing order is the most powerful investment tool that requires no decision-making. Determine an amount, set the order, and forget about it. The DCA cost-averaging strategy works precisely because it removes emotion from the equation.

FAQ

Does it make sense to predict markets for the new year?

No. Professional economists, banks, and funds with billions in assets repeatedly fail at annual forecasts. A clear allocation and automatic deposits will serve an investor far better than a correct index prediction.

What is the value threshold in the Czech Republic?

If total proceeds from selling securities do not exceed CZK 100,000 in a year, the gain is exempt from income tax — regardless of holding period. The limit applies to the sum of all sales in a calendar year. Since 2025 an additional cap of CZK 40 million on exempt income applies.

How often should a portfolio be rebalanced?

For most investors, once a year or when the deviation from the target allocation exceeds 5–10 percentage points is sufficient. Frequent rebalancing increases transaction costs and can complicate the tax holding-period test.

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