stanley@harvestimeresource.com.
Best regards
Stanley Chua
http://www.portfoliomanagementguide.com/limitedoffer.htm
Asset and Portfolio Management : How To Say Goodbye To Emotional Investing ?
Portfolio management is an important part of your life.
Maybe more important than you realize. You have an overall
portfolio that is made up of everything you own. Within
that portfolio is your investment assets that you need to
manage in order to reach your financial goals and have a
healthy and wealthy egg-nest to enjoy in your golden
retirement years.
In order to profit from portfolio management, it is
important to start by designing an investment policy
statement and keep to it during the course of investing. An
investment policy is your guideline? it's a rule of thumb
meant to help you or your portfolio manager make the best
decisions for you. Sometimes (actually, often!) our
emotions cloud our judgment when it comes to investing.
A fairly significant time when emotion clouds our judgment
is when our portfolio value is falling. Our knee-jerk
reaction is to sell it all and put the money in a hole in
the backyard. That happens far too often and was one of the
major causes of the Great Depression in 1939 and the
bursting of the tech bubble in 2000/2001. Investors are so
easily swayed by emotion and what's called "the herd
mentality."
An investment policy is designed to help you avoid
emotional investing or getting caught up in the herd
mentality. It's a statement ? as detailed or as vague as
you want ? that outlines what your goals are with your
portfolio, what your preferred asset mix is, and the
timeline you have to get there.
Here is a sample investment policy statement. Due to space
limitations, it is not heavily detailed.
Investment Policy Statement for John Doe
March 14, 2006
Purpose: the purpose of this statement is to provide me
with a framework in which to manage my investment portfolio.
1. Account: My account is held at XYZ Discount Brokers.
Their number is (800)555-1234. My account number is
123-456-789-123.
2. Investment objectives: My primary goal is growth and the
mix I have selected is as follows: a.Growth: 55% b.Income:
25% c.Safety: 20%
3. Assets: My account is a standard account to hold
equities, bonds, mutual funds, etc.
4. Current: I am investing a lump sum of $5000 into an
equities and mutual fund mix that correlates to the above
asset allocation. Each month I will deposit $200 into my
account, divided into each of the asset allocations.
5. Goals: I want to have $100,000 within 25 years to enable
me to buy a boat and sail around the world.
On this note, I hope that everybody who desires to generate
massive profit from portfolio management, to take out a
piece of paper and build your investment policy now. And
remember to live with it, and I am sure you will find
yourself much more rational in your investment decisions !
----------------------------------------------------
Stanley Chua is an investment optimizer and has been
providing value-adding advisory in international business
innovations, financial planning and portfolio management
for the past 10 years.
Looking to find out more how you can massively profit from
managing your personal portfolio ? You can instantly
receive a Free ?Portfolio Management and Asset Assessment?
E-Course, at => http://www.portfoliomanagementguide.com
