The third step is about conducting a thorough review and analysis of all your assets, both liquid and non-liquid, to assess performance compared to risk and intended objectives. In other words, we’re doing a portfolio analysis. The purpose of this step is to fully understand how all your assets are performing, and if they are doing what you expect and hope for. The objective here is to determine if assets should remain where they, or if any rebalancing, reallocation, or repurposing needs to be done.

The areas of review in this step include:

  • Return on investment performance
  • Allocation of stock market holdings and risk analysis
  • Fees being incurred for portfolio management or investment advice
  • Tax allocation of assets
  • Liquidity and access to funds

The process of evaluating your investments is not only to assess past performance, but to gather data to assist in making reasonable assessments of how investments may perform in the future. This is obviously a challenging task, but it will help position your assets to realize future gains while working to avoid potential losses.

What Our Reporting Includes

There are a number of tools used to help evaluate past performance while providing data to help assess how investments may react in the future to various economic and stock market conditions. Our reporting on your investments includes the following:

  • Breakdown of how all accounts are allocated according to individual securities and bond holdings, categorizing each according to portfolio risk: Preservation, Conservative, Moderate, Balanced, Growth, Aggressive, and Most Aggressive. This will assist you in knowing how your allocations compare to your risk tolerance. This will also enable us as investment advisors to make determinations on if and when your finance portfolios should be rebalanced.
  • The reporting of your investments includes a section titled Equity Sector and Style. Here you will receive up-to-date information on how your accounts are distributed according to various areas of the economy, including Basic Materials, Consumer Cyclical, Financial Services, Real Estate, Communications Services, Energy, Technology, Industrials, Consumer Defense, Health Care, and Utilities. Reporting also includes Equity Style Comparisons so you will understand how your investments are positioned according to Large Cap, Mid Cap, and Small Cap companies, and by company valuations including Value, Blend, and Growth. This will assist you to fully understand and evaluate your investments and potential opportunities.
  • There is a section evaluating if you are overly concentrated in any one security, sector, or style, helping you maintain the proper level of portfolio balance and diversification.
  • Finally, your investments are reviewed for their Tax Profile, giving you data on how much of your money is currently taxable, tax deferred, or tax exempt/tax free. This will help us do tax planning to manage and minimize your taxes and tax risk.

If you have any questions about this step, be sure to contact ProIncome Plan here in Walpole, MA, by phone or email, or by using our convenient online form.