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I have mentioned this before, but it holds steady and true: There is no “perfect” portfolio, but there is a perfect portfolio for you. It mirrors your personal values, financial goals and unique situation, which is why we at Howard Bailey focus on developing your financial L.I.F.E. Plan. In its entirety, your retirement roadmap should be custom-tailored, and as this article states, should also incorporate the “Three Ps of Investments”: Principles, process and path.
The principles of investing: In order to begin introspectively thinking about what your ideal portfolio looks like, experts recommend going through a seven-step checklist. Amongst other items, some of the most noteworthy points to consider include:
📌Determine how much time, energy and expertise you can dedicate to managing your perfect portfolio, and decide if you need professional assistance
📌Analyze your current and future financial needs
📌Pinpoint your comfort zone when it comes to financial gains and losses
The process: Next, it’s important to gain a better understanding of who you are and how that should be incorporated into your investment decisions by determining which of the 16 investor archetypes you mirror most. The criteria for these varying archetypes are based on specific factors: risk, income, spending and environment.
The path: Lastly, after you have navigated your process, you can begin your path to the perfect portfolio. In this phase, you pinpoint your portfolio balance, and the article highlights four “levers” which can be utilized to help reach your desired outcome.
All about perspective: The bottom line is, you will benefit from being open to new strategies and concepts. They may not be right for you today, but they very well could in the future.