Published by Mark Ring
Recently I was reviewing a prospective client’s portfolio and I asked them to answer a few questions about their existing portfolio. I wanted to understand what they believe and how they feel about their portfolio. Here are a few of those questions:
If the market rises 8% over the next twelve months how much would you expect your portfolio to grow?
If the market goes down 15% how much do you believe your portfolio will go down?
Does your portfolio hold cash for strategic deployment for different market conditions?
If you expect income to be derived from your portfolio do you expect it from interest and dividends or growth and capital gains?
I have these questions and a few more in a survey format with multiple choice answers, a straightforward process. The answer to these type of questions makes it easy for anyone to get an immediate understanding if their portfolio perception is in fact a reality. Many times, portfolio perception is not in line with reality. This portfolio perception disconnect could occur for many reasons. Maybe the portfolio’s sectors have shifted overtime. Maybe the investments have changed since the initial allocation. Maybe the holdings are no longer appropriate for your goals and lifestyle. Maybe it’s been awhile since you reviewed your portfolio and you simply have forgotten what you own. It could be numerous reasons. That’s what we strive to correct, no one likes surprises, especially when it’s regarding your wealth.
Avoiding this disconnect is paramount to your financial success. That’s why we employ a discipline and transparent process when completing your comprehensive wealth plan. We perform a risk analysis and a stress test on your current portfolio and strategy. We’ll get you into an appropriate portfolio! We complete a comprehensive cash flow review to help ensure you won’t out live your money. We schedule on going monitoring and reviews so you are in touch with your portfolio.
Our goal is to make the complicated easy!
If you want to test your portfolio perception go to www.jacobwilliam.com and take our risk survey to begin the process. You can also click here to download our Investment Process Whitepaper.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. Investing involves risk including loss of principal. No strategy assures success or protects against loss.