Expert Investment Portfolio Advice

The way you divide your money between different types of assets, Expert Investment Portfolio Advice funds and exchange-traded funds (ETFs), is called asset allocation. Getting it right is crucial for meeting your financial goals and preserving your capital. But it’s a complex process that requires a good understanding of your risk tolerance. Then there are the details: how long you have to invest, how much you expect to spend and whether or not you’ll be taking in income from other sources such as Social Security, rental property or a stake in a small business.

If all that seems too complicated, there are ready-made portfolios to help. But, as this article from Bankrate explains, those can come with their own problems.

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For example, Paul Merriman’s “Ultimate” portfolio is built from 10 equity and one fixed income asset class, but it may not outperform simpler options over your investment horizon. And, more important, it’s a pain to rebalance and allocate across all your accounts.

In addition, every investor’s stomach for risk is unique. A good financial advisor will evaluate your current asset allocation and determine if it’s appropriate for your personal situation and risk tolerance. As with any journey toward your financial goals, you’re likely to veer off course from time to time. A review from a professional advisor will help you recognize when it’s necessary to correct your course. This is why regular portfolio reviews are a vital component of competent investment management.