Portfolio construction needs your skills, even if you outsource
- Rebalancing and its frequency
- Prioritising growth or security
- Embracing or avoiding risks
- Timing buys and sells effectively
- Choosing between short-term and long-term investments
- Opting for lifestyle or lifetime portfolio management
- Deciding whether to sell or hold good and poor-performing investments
Your ‘inner technician’ likely has strong opinions on these decisions. Yet, your inner counsellor’s input on your investment style is equally crucial.
Consider outsourcing your portfolio construction
Entrusting your investments to a professional can be a comforting and strategic decision. While managing your portfolio independently is feasible, it also carries significant risks. The peace of mind that comes with professional management is invaluable.
Even when you delegate the management of your investments, it’s crucial to clearly understand your desired outcomes. This understanding empowers you to make informed decisions and ensures that your investments align with your future life and financial goals.
Having spent a significant part of my career managing portfolios, I’ve identified three fundamental principles:
- Diversification: Invest globally for the long term.
- Risk Management: Ensure your portfolio maintains its value in real terms.
- Asset Allocation: Make sure you always have the right money in the right place at the right time.
Teach your inner consultants about portfolio construction
Successful portfolio management combines principled investment strategies with thorough financial planning. While your inner technician handles the technical aspects, your inner accountant and counsellor must also contribute to the decision-making process.
This approach ensures a balanced and robust portfolio and aligns your investments with your personal and financial aspirations.
Teach all your inner consultants – your accountant, technician, and counsellor – everything they need to know to achieve the best outcomes for your financial future.
Photo attribution
Photo by Scott Graham on Unsplash
Audio link
https://audio.com/jeremy_deedes/portfolio-construction/
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I work with ambitious, family-oriented professionals transitioning to independent consultants to create a 3 to 5-year holistic plan so that they grow wealthy, make a difference and find meaning.
My clients are aged 35-50. They are in a long-term relationship with family and parents who are supportive but ageing. They wrestle with personal and financial responsibilities and dream of more control, wealth, time and purpose.
If this excites you, you are coachable, willing to change, and want to stop going around in circles, then find out more at jeremydeedes.com
Then, take your next step and explore your way forward with a Mapmaker, a one-off online coaching gig to help you decide your options, assess our compatibility, and determine whether we are the right fit. Mapmaker is excellent value, held in confidence and without further commitment.
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