Chapter 3. Portfolio Management

Now that we have considered your intergenerational equity goals (Chapter 1) and how to structure trusts that will help support those goals (Chapter 2), we will consider how to manage your portfolio so that your investments will achieve those goals.

This chapter is not meant as a primer on investing, but it will present concepts and approaches that you may want to consider and discuss with your investment advisors and/or managers.[5] Some high-net worth people possess the interest, education, and experience to oversee their own portfolios, from assessing risk tolerance to creating asset allocations, selecting actual securities and other investments, and tracking their returns. Others prefer to entrust all those decisions to investment professionals. Somewhere in the middle are individuals who essentially act as their own general contractors, finding and assessing the right blend of investment experts to create and manage different portions of their portfolio.

Wherever your comfort zone may be on this scale, understanding how best to manuever within the maze of the high-net worth investment world will enable you to work more effectively with the people you hire to meet your personal and intergenerational equity goals.

Self-Survey about Portfolio Management

First, here's a self-survey to help you assess any assumptions you bring to this exploration. We encourage you to revisit this self-survey after you read this chapter to identify areas where your thinking ...

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