Who’s Watching Your Baby?

Managing an investment portfolio is not–and never has been–an easy task, but this final step in the investment planning process is key to successful investing. Managing actually encompasses two distinct functions: portfolio management and portfolio monitoring.

Portfolio management refers to the selection of specific investments and the choice of timing to buy or sell, according to your goals and disposition. A higher level of expertise is needed for this than most investors possess. These investors should seek the help of a professional advisor and/or money manager who may or may not be under the direction of an advisor.

Portfolio monitoring is an ongoing program that provides you with information needed to evaluate your portfolio’s performance and allows you to rebalance the portfolio to keep it on track in achieving your objectives. This function, too, is often left to a professional. If you have the time and expertise to monitor your own portfolio well, use a soft ware package specifically designed for this purpose. Do not attempt to monitor a portfolio manually.

Outsource Your Portfolio?

The advisor’s role might be all-encompassing or limited to certain tasks. Either way, the duties can be broken down into four major categories:

1. Managing all or part of your portfolio. Typically, an advisor will employ and oversee money managers who evaluate and implement investment options and strategies. You may also simply employ money managers to implement your own investment decisions.

2. Reviewing your portfolio’s performance. This entails measuring the overall performance of your portfolio, as well as the performance of asset classes and individual investments within the portfolio.

3. Reporting to you. Reports from your advisor should provide you with information about your portfolio’s performance, compliance with your investment policy, progress toward your financial goals, and the effects on cash flow and taxes.

4. Recommending changes to your investment plan. A rebalance plan should be proposed, unless a buy-and-hold strategy is recommended.

Want Faith-Based Investment Advice?
Many want to handle their portfolios on their own yet want some financial advice yet do not want to pay an arm and a leg for advice. I have created such a solution: www.faithbasedinvestor.com allows individuals to get faith-based investment advice on a monthly basis for $19.99 per month. Whether you choose mutual funds, Exchange Traded Funds (ETFs) or individual stocks, this site has something for everyone. Whether you have $10,000 or $10 Million to invest, this site is truly state of the art and can take your portfolio to a whole new level!

This is a resource for stock market investing, Christian investing, faith-based investing, biblically responsible investing, values based investing.