Portfolio Maintenance
At Heritage Investors, portfolio maintenance means we don’t let emotions pull us away from our long-term strategy. This sounds simple, but it may be our most important job.
Life happens. Sometimes the financial markets will plummet; other times they will take off. Clients will get sick, or they’ll inherit money. A thousand things will happen that can easily push you off course if you’re not focused. We’re here to make sure you are focused.
Consider the domestic markets downturn of 2008 and 2009; this was easily the worst financial climate in decades. Many people experienced a dive in their portfolio values, and they were legitimately worried. Yet, with the S&P 500 index as an example, in two years the markets had gained back what they lost, and in the last five years it has risen over 200 percent from its low in 2009. Put simply, financial advisors who acted out of fear did their clients a disservice.
The same holds true for a rising market. Just because it’s a good year—or month or week—doesn’t mean we abandon our approach to your portfolio. Sound investing requires a long-term view.
That doesn’t mean there’s nothing to do, but first we must let go of our panic or our giddiness. Then the job is relatively simple. Looking at the design we agreed on, sell the bigger piece of the pie and buy the smaller, selling positions where you’ve gained money and buying positions where you’ve lost.
We rebalance, not monthly or quarterly, but as the market dictates. Then we get together with you quarterly or semiannually to make sure we’re both on the same page.
In our opinion, as long as your needs and your goals don't change, neither should your strategy. With a cool head and us by your side, you will take the long view in your investments. This is the only way to ensure that get where you want to go.
