CANADIAN RETIREMENT PLANNING MISTAKES #2

Posted on: May 11th, 2018 by Kevin Lavigne

NOT SEEING DANGER SIGNS IN YOUR PORTFOLIO

 

Problem: Unless you’re an asset-allocation specialist, how do you know whether your portfolio is matched to your risk tolerance?

 

When an investor is frustrated with lack of performance, nine times out of ten it is based on asset allocation and a lack of diversification.  Here are nine danger

signs possibly lurking in your portfolio.

 

  1. Lack of clear investment policy statement (IPS)–a structure that is not clearly defined and understood
  2. IPS for your portfolio.
  3. Investments mismatched with objectives or risk tolerance–under-
  4. standing risk and how it relates to your money and portfolio.
  5. Under-performing investments or managers–know when to hold
  6. them and know when to fold them.
  7. Style drift portfolios–that look at risk-adjusted return.
  8. Overlapping investments or management styles.
  9. Excessive expenses or trading activity.
  10. Lack of a system or lack of regular monitoring, adjusting, and
  11. rebalancing.
  12. Unclear or untimely reporting–when do you review this stuff ?
  13. Lack of communication and service.

Please contact Reid & Associates Financial Solutions today @ 250-860-6464  about potential danger signs in your portfolio.

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