Investment portfolio check-up

The performance of the underlying investments is vital to the overall outcome of the plan. Do you feel that the investments that your plans links to are due for a review? Does the risk level your plan has exposure to make you feel uncomfortable? Or, do you want to review the current investment strategy of your plan? It sounds like your portfolio needs an investment check-up.

Human nature is tricky when it comes to making investment decisions. In daily life we easily spot a bargain, but people think differently about investments, almost the opposite actually.

For instance, when you buy your favorite clothes brand with 50% discount you got a great deal. However, you probably don’t feel as excited when your broker suggest to buy equity, of that same brand, at 50% down from the top. On the other hand, everybody considers stocks up 50% compared to last year great stocks. But nobody in their right mind buys clothes that are 50% more expensive than to last year. This analogy is not perfect, but it tries to illustrate that investing is counterintuitive. This is what makes it so difficult, emotionally, for most people.

Risk perception

Risk and return perceptions also differ between people and largely depend on your point of reference. For example, non-Russian investors probably perceive investing in Gazprom bonds as high risk, whereas for most Russians it is a blue-chip stock equivalent in risk to governmental bonds.

Shoreline understands that the most important aspect of risk & return is how comfortable you feel with your investments and that your investments yield in line with your expectations. If your expectations are not aligned with the risk you are willing to accept we will tell you and offer alternatives.

Schedule a check-up:

When you are already a Shoreline client please contact your investment adviser for a portfolio check-up. If your plan is with another company, or if you have lost contact with your previous adviser Shoreline is happy to advice you going forward.

To learn more about the benefits you can get by working with Shoreline click here.