Apply this 7-point checkup to your portfolio

We keep regular tabs on many factors throughout our lifetime. I submit that a best practice is to apply the same principle to the family nest egg: whether it is the starting portfolio or your retirement fund.

A new year often prompts investors to consider making changes to portfolios. Hopefully, well thought out changes that improve your desired outcomes.

I’ve designed a simple checkup tool and I invite you to adopt it. If you desire to manage family wealth, you should be conversant with each point. I suggest making it high priority.

The 7-point tool is a small bundle of steps that assesses your precious nest egg. A big picture check of family wealth typically delivers more simplicity alongside value.

However, it’s easy to get swamped. Too many investors latch onto walls of worry that cloud decisions. Fears of low returns, rising health care and running short of money come to mind.

My checkup tool helps seal the cracks found in a variety of financial foundations. Particularly for investors who make high demands on the nest egg.

Vital Issues

You need to first identify the cracks, as opposed to the minutia. Then initiate swift, corrective actions for the long run. The resulting analysis is a simple grouping of your “Yes/No” answers.

Let’s probe your portfolio on these vital issues:

Vital Portfolio Issues	Your Replies
1. ▶Are your goals achievable with the current action plan?	Yes: ___ No: ___
2. ▶Are you saving enough to fund the retirement targets?	Yes: ___ No: ___
3. ▶Are your retirement assumptions realistic for today?	Yes: ___ No: ___
4. ▶Are you investing within a comfortable asset mix?	Yes: ___ No: ___
5. ▶Are you aware how the advisor is paid?	Yes: ___ No: ___
6. ▶Are you happy with the direction of the portfolio?	Yes: ___ No: ___
7. ▶Are you receiving objective and unbiased advice?	Yes: ___ No: ___

A fitting portfolio starts at five “Yes” replies. Now to assess your portfolio health:

Number of “Yes” Replies	Your Portfolio Health
6 to 7	Robust nest egg
4 to 5	Needs some tweaks
2 to 3	Urgent attention required
0 to 1	Design new action plan

Apply my concise suite of nest egg checks to establish a sense of your direction. They are also early warnings that highlight portfolio weakness.

Any one of the issues can impact your family’s progress. For some, two or more “No” replies can inflict undesirable outcomes.

These remedies provide you added values:

Make certain your game plan is logical and sensible.
Revisit your asset mix targets every three to five years.

Prune some investments if you own too many.
Reduce excess complexity in your nest egg.

Ensure that your family nest egg delivers on expectations. Actions that turn “No” into “Yes” replies improve your portfolio pillars.

One superb habit is to reapply this tool, say every year or two. Historical trails you create are useful comparisons over the long run. The process takes little time.

This 7-point checkup is an integral part of my management toolbox. It can also begin to make a difference to your long term planning.

Happy to discuss. Feedback is appreciated.

Adrian Mastracci, Discretionary Portfolio Manager, B.E.E., MBA started in the investment and financial advisory profession in 1972. He is currently a portfolio manager with Vancouver-based Lycos Asset Management Inc. He graduated with the Bachelor of Electrical Engineering from General Motors Institute in 1971, then attended the University of British Columbia, graduating with the MBA in 1972.