Money Matters

Do you own the right portfolio?

6 Oct 2016 by: jhurley 


One of our favorite financial columnist’s, Jonathan Clements, writes often about having the right portfolio.  Below we have presented some of his main themes –and ours– that he shares often in his columns.

Here are some signs that you own the right portfolio:

  • Your portfolio is fully diversified which means at least one asset class will be a disappoint at some point.
  • You aren’t completely dependent on your paycheck and your employer’s stock.
  • You can recall the last time your portfolio was rebalanced.
  • You, or your advisor, takes tax losses when they are available and appropriate for your situation, e.g. “tax loss harvesting.”
  • Your portfolio is invested with your longer-term goals in mind, such as leaving a legacy to your family, funding charitable causes, or supplementing your retirement income.
  • You are never surprised by market corrections as they are a normal part of market activity.
  • You realize it’s not important how your portfolio performs over one month or even over one year; it is important to you what your portfolio does over five to ten years.
  • You don’t make jack rabbit responses to market declines.
  • Your portfolio is slightly over weighted to value and small cap stocks, compared to the overall stock market; you have international and emerging market stocks in your portfolio.

CCMI provides personalized fee-only financial planning and investment management services to business owners, professionals, individuals and families in San Diego and throughout the country. CCMI has a team of CERTIFIED FINANCIAL PLANNERTM professionals who act as fiduciaries, which means our clients’ interests always come first.
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