Is your portfolio built as well as today’s high-tech automobiles?
Last weekend, I made a trip up the gorgeous California coastline to the race track at Laguna Seca with seventeen other Corvette owners, members of the Red Line Corvette Club. It was at this track that racing fans got to see how the Corvette fared against a Porsche in the Monterey Grand Prix. Driving a Corvette has become my new passion, and on this recent trip, I started to think about the precision that goes into building a car and how that same level of care applies to the way we manage our financial planning.
This year, we’ve seen more cars designed with more built-in computers than ever before. These smart cars often include self-driving programs, such the Volvo 590, which comes with a Pilot Assist mode for light traffic situations. Auto manufacturers are tying together enough processing power for 30 to 60 computers to components like brakes, windows, and airbags. Their goal is to make these vehicles safe for their drivers on every possible level.
When Chevrolet designed the Corvette Stingray 2015, they took this principle to heart. Instead of going with the classic steel frame, their engineers used aluminum and carbon fiber. What they came up with was a Corvette with superior weight distribution, which meant better handling and acceleration on the road.
Instead of trying to make the car lighter after it was designed, the foundation principle was to build the car by measuring each component in grams. Yes, grams are the lowest common denominator when it comes to weight. Every gram earned its way onto the Corvette Stingray.
How is your portfolio built?
A sound portfolio shouldn’t be simply a random walk on Wall Street but tailored to your individual needs and your future goals. Ask yourself if your fund is diverse enough to account for any unexpected risks, or if it’s growing at the rate you want.
Just like the engineers who built my corvette, my role as a professional financial manager is to review your financial goals and current plan “gram-by-gram” to design your portfolio for your road ahead.
We live in an age where your car will soon be able to drive itself so it might be time for portfolio review. You shouldn’t let your investments run on autopilot.
Are you ready to build a new portfolio of sound investments for the future?
John Grace is not a doctor nor has he obtained a PhD/MD in any field of study.
Securities and advisory services offered through National Planning Corporation (NPC), Member FINRA/SIPC, a Registered Investment Adviser. Investors Advantage and NPC are separate and unrelated companies.