Simplify your portfolio…and your life

by Marilou Moursund on May 14, 2009

in Crossvault Capital,Investment Strategies

The current financial system crisis and resulting economic contraction has caused many people to think about what is really important to them. 

There have been lots of articles about cutting expenses, planning for retirement, and building up savings.  The leverage in the financial system and the crushing burden of consumer debt are two sides of the same coin, and the process of deleveraging and asset prices falling has been extremely painful for everyone.  Many managers clearly did not understand the risks embedded in their extremely complicated financial strategies.

When we first meet with a prospective client, we recommend that they consolidate their various smaller accounts in order to make it easier to look at for them.  They might be receiving numerous statements and not really know what their overall asset allocation looks like.  As Laura noted in her post about the Sixty Minutes program, many people were devastated by having too high an allocation to equities when they were close to retirement. 

They might have made better decisions if they had a clear idea about their stocks/bonds/cash allocation.


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