#132: Why You Are Your Own Wealth Manager.

We are all Wealth Managers. You might have hired a financial advisor for your money matters, which makes perfect sense for that particular asset class. However, what is your personal multi-asset strategy?

A Wealth Manager looks after a portfolio of assets. Now think beyond shares, bonds, real estate, private equity or distressed assets. Just think of yourself!

What is it that makes up YOU?

You are definitely more than your bank statement or tax return. Whatever is of value to you needs to be managed. Value needs to be preserved or grown. You might have to defend your assets in times of stress. Volatility is normal. Be cool about it.

Why not follow a standard portfolio planning process consisting of five steps?

Step 1: Assess the Current Situation.

Where are you on your journey in life? What gives you joy? What is worth preserving? What do you still want to create, develop, build?

Step 2: Establish Investment Goals.

Are you aiming for growth or income? What is your risk appetite or craving? What are you willing to invest to reach your goals? Do you value belonging more than contributing? Is loving and being loved the ultimate return?

Step 3: Determine Asset Allocation.

What do you consider an asset? Are they all tangible or may they also be intangible? Do you want to invest in yourself, relationships with others, your community, the environment at large?

Step 4: Select Investment Options.

Acknowledging that you can’t do everything at once, make one investment after another. Implementation time for some is longer than it is for others. Once you have made an investment decision, focus on execution. Do it!

Step 5: Measure and Rebalance.

Measurement is key. Mark-to-market your investments. Don’t wallow in your past. What is the value you get out of a particular investment today? Put an end to whatever doesn’t help you meet your investment goals. Find alternatives. Reassess your options. Execute again.

This idea might sound foolish to a someone without affinity to financial markets. I have pretty much lost mine to be honest, but there is value I can extract from this concept.

There is so much I value highly.

I need to look after it.

If I don’t, nobody will.

It is my job to take care of what is important to me.