CHAPTER 8
Rebalance Your Initiative Portfolio
by Peter LaCasse
The concept of initiative portfolio management is derived from sound investment practice. A good financial adviser ensures that each client has a balanced portfolio, with an appropriate mix of investments in stocks, bonds, money market, and other asset classes. In choosing this mix, the adviser considers many factors, such as the client’s date of retirement, future income needs, and risk tolerance, among others. As things change, the adviser tweaks the mix on an ongoing basis. For example, if stocks represent 40% of a client’s portfolio but quarterly returns from them exceed that percentage, the adviser will need to rebalance the stock allocation to maintain the portfolio’s original ...
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