What is a Financial Portfolio Review

Portfolio Review

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. I would not want you to be holding a portfolio that is 80% stocks, which might lose 30% in a bad year, when your profile indicates that you would sell everything if it dropped even 5%.

Daniel Kahneman’s Nobel Prize Bio

For others, the opposite is true. You might need to take more risks to reach your financial goals. As you financial advisor, I need to alert you and give you options: take more risks, save more money, diversify your investments more, etc.

Diversification and Investment Portfolio Design

1. Gather Up Your Financial Information – IRAs, 401(k)s, 403(b)s, Brokerage Accounts, Mutual Funds , Annuities

3. Compare Those Funds to Your Current Funds and Investments

  • Executive Summary – presents an overview of the report, our firm, and the services we provide
  • Holdings Summary – presents the allocation of your current and proposed investments
  • Style Analysis – by U.S. equity, international equity, fixed income
  • Portfolio Performance Analysis – compares the performance of current and proposed investments
  • Fee Analysis – current vs. proposed portfolio
  • Closing comments and items for your consideration

Sample Proposal (PDF)