Why You Need a Portfolio Review
Align your risk tolerance into a custom portfolio so you can better reach your goals
And Why is My Risk Profile So Important?
You wouldn’t want you to be holding a portfolio that is 80% stocks, which might lose 30% in a bad year, when your risk profile indicates that you would sell everything if it dropped even 5%.
Psychologist Daniel Kahneman won the 2002 Nobel Prize in Economics for bringing to light that people hate to lose money more than they like to make money. Aversion to losses is one reason I ask you to measure your risk profile online at FinaMetrica.
For others, the opposite is true. You might need to take more risks to reach your financial goals. As your financial advisor, I need to alert you and give you options: take more risks, save more money, diversify your investments more, etc. Obviously, each client’s individual risk profile must be respected.
What Accounts Can Be Included?
The review can include all of your accounts: 401(k), IRA, 403(b), annuities, brokerage accounts, mutual funds, stocks, bonds
What Do I Get When it is Finished?
- Executive Summary — Overview of the proposal, our firm, and the services we provide
- Holdings Summary — present the allocation of your proposed and current investments
- Style Analysis — by U.S. equity, international equity, and fixed income
- Portfolio Performance Analysis — compare the performance of your current and proposed investments
- Fee Analysis — current vs. proposed portfolio
- Risk Tolerance Report
- Closing comments and items for your consideration
What Happens After I Receive My Report?
You may simply need your portfolio fine-tuned, or perhaps major changes are in order. Whatever the case, I’ll recommend a customized portfolio that addresses your needs and goals. And, as your financial advisor, I’ll commit to reviewing your portfolio at least once a year.
Whether you’re looking to change jobs, shifting gears into retirement, or already participating in a investment plan at work (401(k), 403(b), etc.), you owe it to yourself and your family to make sure you’re doing the right things at the right time.