Case Studies: Part 2

In Build Your Portfolio: Case Studies: In Retirement, our investors constructed portfolios based upon their personal situations. But their work isn’t done. A well managed portfolio is reviewed annually and whenever a significant change occurs.

For the Manage Your Portfolio case studies, we enlisted Dave, a certified financial planner, to review the portfolios, give out a few tips and provide our investors with their personal to-do lists.


Dave, Certified Financial Planner

“My job is to look at both the big picture (is the portfolio suitable for the client?) and the small details (are the investments performing as expected, what changes are needed, and so on?)"

For retirees, Dave uses a four-point review system. The purpose of the review is to:

  • Maintain suitability:
    • Are investment choices are still appropriate?
    • Is the target asset mix unchanged?
  • Predict retirement income adequacy:
    • Is the portfolio generating sufficient income?
    • Can the current retirement income be maintained?
  • To monitor, report and evaluate portfolio parameters:
    • Is performance competitive against benchmarks and similar funds/other investments?
    • Are fees competitive and have low-cost alternatives have been sought out?
    • To compare investment return with objectives.
    • To assess tax-efficiency of the portfolio and individual accounts.
  • To identify required changes and implement portfolio adjustments:
    • Do investments need to be replaced?
    • Is rebalancing required?
    • Is reallocation required?
    • To individual accounts or investments held.

In the Build Your Portfolio section, you identified the case study that most closely resembles your situation. Now, to read Dave’s review of the case study, see the “More…” section below. Use his tips and to-dos as a guideline when managing your own portfolio.

You are ultimately responsible to make the final decisions about your investment choices. Ensure you invest according to your personal situation.

If you are still working and not yet in retirement, see Build Your Portfolio: Case Studies: While You’re Working and Manage Your Portfolio: Case Studies: While You’re Working.