Knowing how your portfolio fits into your plan

Marshall Rathmell |


Just like you know what kind of car you own and what fits in it (most of the time), you want to know what securities you have invested your money in.

As an investor, you are investing for your future and want to be set up for success in reaching your financial goals. In your investment portfolio, you most likely own shares of mutual funds, ETFs, individual stocks, bonds, or some combination of these. But do you know exactly what you own or why you own them? Whether you have a financial advisor who manages your portfolio or not, it’s important to educate yourself on how your portfolio is constructed.

First, you need to be aware of the different holdings you own. Secondly, you want to know why you own the assets that you do. It’s important to have confidence that the holdings in your portfolio are the building blocks to your investing success. Your investment portfolio reflects part of what your financial picture looks like now, but does it also reflect what you would like to achieve in the future?

You can educate yourself on how to construct and manage a well-balanced portfolio. However, there is an added benefit to working with a financial advisor. A financial advisor should take into consideration tax implications, investment costs, and conduct investment research so you don’t have to. Your advisor will create and manage a portfolio that works best for you and your goals. They will support you through varying market conditions to help you stay on target.

A financial advisor acting as a fiduciary wants you to know what you own and why you own it. It is your future after all. However, knowing what fits in to your car is on you!