Is Your Portfolio Broken?
If it ain’t broke, don’t fix it.
A lot of people I know tend to live by this maxim. I am certainly one of those people.
Recently, maybe it’s due to me getting older, I decided to go to the doctor to get some bloodwork done. No, I don’t feel sick, but I just wanted to make sure there wasn’t something lurking under the surface. I feel fine, but I wanted to be sure.
In a few weeks, I will have had blood drawn and tests run and I will find out if I am as healthy as I think (and hope!) that I am.
Most people I meet have the mentality that if it ain’t broke, don’t fix it with their investments. They don’t think anything is wrong with their portfolio until something major happens with the market. Their portfolio starts behaving in a way they did not expect or account for. Then, out of fear, they begin scrambling and making major changes to their portfolio. In the end, these changes typically result in making things worse for the investor instead of better.
Others, however, take the time to ask a professional to take a hard look at their portfolio. They want to make sure that they are truly diversified and truly in the right segments of the market. Then, when the market has a major change, they aren’t panicking and racing around because they have set reasonable expectations about their portfolio and its behavior. They are able to ride out the market, and in the end, they are better off for doing so.
Is your portfolio broken? Just like your body, if it doesn’t behave as it should during varying market conditions, then something is wrong.
If you don’t know if it’s broken or not, don’t you think it is worth it to know? It is worth it to me to check on my health. Not only do I need to be healthy for myself, but also for my wife and kids. My family depends on me being healthy and therefore it is worth it to me to get my health checked out.
The truth is, my family also depends on my investments being healthy too. All of what I want to accomplish in my life takes money, from everyday expenses to memory-making trips and giving to charity. It is worth it to me to make sure my portfolio is set up well too.
I like to help people have peace of mind with their investments. This means that they know what they are doing and why. This means they know the range of returns their portfolio could return in any given year. This means they don’t operate out of fear and panic when things get tough. They are able to sleep at night knowing that they are doing the best that they can with their money.
So, can you sleep at night? If you don’t know if your portfolio is healthy, contact me. I would love to help you move towards having peace of mind with your investments.
