Financial Analysis (Portfolio MRI)

Financial Analysis (Portfolio MRI)

Does your portfolio need an MRI?

Creating a sound investment strategy is an important and often overwhelming task. Markets change and flux and business is unpredictable by its nature. Combine that with the financial industry’s countless gurus and the equally endless philosophies they offer and it is any wonder why you have to be a financial analyst to make heads or tails.

To aid the formation of sound strategies, we have compiled a list of “concepts to consider” for the novice investor. Our hope is to raise good questions and offer our perspective in our typical coaching style. Understanding how the markets work is vital to forming the investment strategy you will be most comfortable with.

In fact, there are 15 markets worldwide! Understanding each one and investing properly is crucial to managing risk and return.

Once you understand the basics of how markets work, you will need to define your investment philosophy. The truth is, there are really only a few philosophies and discovering which you agree with is fairly easy once you know what you are comparing! Now that the background work is done, we can look at concepts such as your “portfolio”. Most people have heard this term as it relates to investing, but few have a clear understanding of how to manage it. What is included in a portfolio and having a system to measure volatility are keys to successful investing.

Speaking of your portfolio, things are not always as clear as they seem. Measuring the total amount of commissions and costs in your portfolio depends on the account manager’s fee structure, trading costs and other expenses, not to mention some hidden goodies! Knowing your costs can sometimes be more difficult than you expect. You need a fee-only coach that will analysis your current portfolio and show you what they are.

What is the Purpose of a "Portfolio MRI/Analysis"?

The MRI is a diagnostic measure of your current investment information. 

The purpose of this personalized MRI is to help you understand how various mixes or styles of investment portfolios may have performed in the past. The MRI is a basic comparison of your current portfolio vs. that of a globally diversified portfolio like the ones offered by SmartPlan.

Your Investor Coach will take you through this process to help you identify the biggest threats in your current investment strategy and holdings, in order to discover your biggest opportunities for growth. After engaging in this process you will learn:

How diversified you REALLY are. If you think diversification is important, don’t you think you should be able to measure it?

The amount of fees you are paying in your current portfolio, including the hidden fees you probably don’t even know exist. Fees are one area of investing you can control. Don’t you think you should know exactly what is going on in your portfolio?

How efficient your portfolio is in terms of the amount of return you can expect for your given risk level. Do you know where you fall on Markowitz’s Efficient Frontier?

Do you have questions about your financial picture? Let's talk about it.