When we think of a portfolio, we often think of a list of stocks and bonds, and yet our portfolio should contain much more than a snap-shot of our current asset positions and investments. It should provide the ability to plan, forecast, track, status, and strategize using our trend information, asset allocations, benchmark data, and our goals.

Establishing our portfolio is a first step in asset determination and planning.

Establishing a Portfolio
If we are establishing a portfolio comprised of existing information, or creating the framework and plan for the first time, we think in the same terms. We devise realistic and achievable goals, determine our current position, and form a strategy and plan to get from where we are to where we want to be. There are many factors involved in successful financial planning, and the ability to plan, manage, track, assess, and analyze our position is critical.

Portfolio Management

Portfolio Management includes analysis, planning, and making decisions regarding our saving and investment amounts, investment mix and plans, and our performance objectives balanced by our comfort level for risk. It includes our strategies and decisions associated with value, growth, and income trade-offs, asset allocation and balancing, matching investments to objectives, and requires tracking and trend analysis at the portfolio and individual asset level. A Portfolio Management tool should aid in determining where we want to go, and through periodic updates, tell us where we are in relation to that goal. It should tell us whether or not past decisions and directions have achieved the desired results, and provide for “what-if” scenarios so we can change expected returns and see the impact before we make the change.

Asset Allocation Examples from Jazer 100 Personal Finance software

Summary
A saving plan that includes routine saving and investing is an important part of any financial strategy, and it needs to be integrated with our other financial information. Using our complete financial picture ensures that our goals are achievable and will meet our current and future financial needs.