The Portfolios

BEFORE we dive into the portfolios let’s briefly discuss why they were selected in the first place.

HOW THE PORTFOLIOS WERE SELECTED

There are millions of different options when selecting a portfolio. I’ve narrowed it down to 21 strategies and asset allocation options based on specific criteria that have strong empirical investment support and can be used to help investors meet their financial and behavioral needs. I refer to these strategies as “the world’s most powerful” because each one has unique attributes that can empower you in your pursuit of financial independence. I hope to help you in picking out your portfolio and, as a father of two daughters, I understand the importance of choosing suitors, so I took great care in selecting your potential portfolios.^*

These portfolios can be utilized within a broader approach, but it’s important to note that you need a plan and a process before you enter a relationship with any of these strategies. Your asset allocation is just one piece of a broader financial plan and so I would encourage you to construct an overarching plan and goals before you select a strategy (or strategies) that can be applied to match those goals. As a financial advisor who also operates as a portfolio manager, I’ve often found there to be a conflict between the way portfolio managers think of asset allocation (generally trying to generate the highest returns relative to risk) versus the way financial planners try to construct prudent plans that rely on generating appropriate returns relative to the financial plan and investor risk profile. Blending these two worlds is often a delicate balancing act.

It’s also important to keep in mind that you don’t need to only pick one portfolio. Yes, many of these portfolios are one-stop-shop portfolios, but you can also mix and match. Don’t worry, your stocks won’t mind if you cheat on them a little bit with your bonds or alternatives.

Let’s jump in.