Investment portfolios come in all shapes and sizes. Some are big and some are small. But regardless of their size, there’s a common thread. What am I talking about?
All portfolios, regardless of whether they are a 401(k) retirement plan, an IRA, or a brokerage account, have defining characteristics.
Certain portfolios, for example, are an over-diversified mess of everything held everywhere. Other portfolios are heavily concentrated in just one asset class like gold (NYSEARCA:IAU), a few stocks (Nasdaq:JAVLX) or one industry sector like bank stocks (NYSEARCA:KBE) or biotechs (NasdaqGM:IBB). Does your portfolio have these attributes?
In either case, the construction of many investment portfolios rarely meets the true objectives of the investor. Why? Because the portfolios contain major structural flaws that restrict or threaten performance. And unless these defects are identified and eliminated, they will hamper financial progress.
In my latest video titled, “Which of these 3 Portfolios is Yours?” I examine three common types of portfolios. These are the investment accounts I’ve executed personalized Portfolio Report Cards on over the past few months. Since May, I’ve already analyzed and graded more than $15 million in portfolios.
The Portfolio Report Card method I invented for analyzing and grading portfolios uncovers most of the investment problems that afflict people. The simple grading system of A, B, C, D, or F helps you to understand the financial condition of your investments in the only five areas that matter; risk, cost, taxes, diversification, and performance. Does your portfolio pass or fail?
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