Discover how to conduct a thorough halal wealth evaluation to identify what to keep, change, or simplify.
Key Takeaways
- A comprehensive year-end wealth evaluation includes goals, investment accounts, and values; each part ends in a decision to keep, change, or simplify.
- Organizing and cleaning up investment accounts gives you a clearer view of what you hold.
- Decisions on keeping, changing, or simplifying your investments should align with your long-term objectives and Islamic principles.
Conducting a year-end wealth evaluation offers a structured approach to aligning your finances with your halal investing goals.
Setting Clear Wealth Management Goals
In an effective wealth evaluation, consider establishing clear investment goals. Ask whether you’re saving for retirement, funding education, or planning for charitable giving. Each goal may have specific timelines and relevance under Sharia principles. Start by reviewing any changes in your life circumstances over the past year, such as a new job, marriage, or the birth of a child. These events may necessitate adjustments to your goals or financial priorities.
Once you’ve reviewed your circumstances and any applicable goals, decide which ones to keep, change, or simplify. Remember, each decision should reflect your immediate needs and long-term aspirations considered under Islamic investment principles. You can Explore Service if you need assistance aligning your investment objectives with Islamic Principles.
Reviewing Your Investment Accounts
Review each investment account you hold, such as IRAs and old workplace retirement accounts, for its status and relevance to your current financial goals. For each account, check that the named beneficiaries are current and match who you intend to inherit that account. For estate documents, consult an attorney.
If you have more than one old workplace retirement account, a rollover could be an option to consolidate your accounts. Direct transfers between institutions are one way to move balances, but account rules vary.1 Make sure to direct any tax questions to your tax professional.
Decide which accounts to keep, change, or simplify. ShariaPortfolio can assist with eligible rollovers, transfers, and account funding through our designated custodian. Assistance is available in most cases, depending on the account type and applicable requirements. Tax-related questions should be directed to your qualified tax professional.
Aligning Values and Investment Holdings
Finally, an important component of the year-end review is that your investments reflect your Islamic values. Assess your current holdings for adherence to halal investment principles. ShariaPortfolio builds portfolios from securities that meet its own Islamic investment criteria, reviewed by its Sharia advisor; references to Sharia-compliant or halal reflect the firm’s criteria and understanding. Interpretations may differ among scholars. As you examine your portfolio, identify opportunities to divest from non-permissible activities.
ShariaPortfolio provides halal investment management services within an Islamic principle framework.
At the conclusion of this values-based review, determine which holdings to keep, change, or simplify to better meet your goals. You can Schedule a Consultation if you require assistance in structuring a portfolio that reflects both your ethical values and financial targets.
All investments involve risk, including possible loss of principal, and Sharia screening does not remove investment risk or guarantee any outcome.
Arrange a consultation if you want help reviewing what to keep, change, or simplify.
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Internal Revenue Service, “Rollovers of retirement plan and IRA distributions,” https://www.irs.gov/retirement-plans/plan-participant-employee/rollovers-of-retirement-plan-and-ira-distributions, accessed September 30, 2026.↩︎