1. Take our Risk Tolerance Test.
2. Determine the actual risk exposure of your top 7-10 investments and then review their top-to-bottom losses in the Great Recession.
3. Determine the percentage of investments to 3 investment categories:
____% Fixed Assets where you can’t lose your principal but could possibly earn 3-4% per year over the next 5, 10 or 15+ years.
____% Low Risk and Low Volatility with Capital Preservation over time and earn possibly 5-7% per year over the next 5, 10 or 15+ years.
____% Moderate Risk portfolio of equities where the portfolio can go “Risk Off” to cash or potentially make money even if the stock market is going up or down.
4. Review “Aggregate Manager Performance” managers in the Low and Moderate Risk portfolios.
5. Daily management of the portfolio to determine the Relative Strength or the Trend Following aspects of the portfolio.
6. Monitor the overall plan with at least 1 review per year.
7. Make portfolio adjustments as needed.