Think back to the last time you took a close look at your investment portfolio. What goals did you have in mind at the time? What financial needs did you have? Do these factors represent what you need today? The average investor lost ~1% per year in return due to behavioral mismanagement of their investments.1 Neglecting your portfolio can lead to preventable losses. An outdated portfolio can fail to reflect your strategic life plan. As you grow and develop, your portfolio needs to as well.
How Do You Determine What to Change?
The creation of a strong portfolio begins with a holistic understanding of your background and what you hope to achieve. This can include your risk profile, tax situation, business assets, and strategic life plan. With time, priorities can shift. For example, you could be planning for retirement, a college education, a legacy, maximizing returns, or any number of other goals, and as such a fresh portfolio should reflect both long- and short-term goals.
A stale portfolio causes unnecessary anxiety and stress, which can lead to decisions made out of panic. Trying to manage changing market conditions and changing life circumstances is a balancing act, if you drop the ball there can be serious consequences. At Ganim Financial, we complete an Investment Policy Statement (IPS) with our clients. This clear and comprehensive document gives you the ability to make better-informed decisions at every turn. Through the IPS, our staff is able to work with clients to outline a portfolio and the path towards your goals.
How Do You Get Started?
Regardless of your end goals, the process always starts the same. Take stock of your current finances, the investment risk you’re willing to take, and the gains you expect to receive in return. At Ganim Financial, our investment process starts by having an open and honest discussion with you, so we can learn about your background and what you want to achieve. Together we establish a relationship that helps you make more informed decisions about your plan. We dynamically rebalance your portfolio, not to a static allocation, but to a targeted budget to help you stay on track. This creates a fresh portfolio that grows with you.
1 Source: Morningstar: “Just How Bad Is Fund Investors’ Timing?”