Is Your Portfolio in a Good Spot? This Tool Can Help

In its simplest form, a portfolio is a collection of assets. So your stocks, bonds and mutual funds make up a portfolio.

But a portfolio can be anything but simple. If it’s not managed correctly, you’re more likely to miss your financial goals.

“It can be difficult to assess your entire portfolio, especially if you have investments spread across multiple accounts,” said Joe Correnti, senior vice president of brokerage product at Scottrade. “If you can’t analyze your portfolio, it can be equally hard to determine whether your portfolio is aligned with your financial goals.”

That’s why many investors turn to tools to help them manage their portfolios.

Portfolio Review Tool

One starting point for Scottrade® clients is the Portfolio Review Tool. The tool has a variety of functions, and can be used for everything from basic tracking of your investments to automating some of your portfolio decisions. As you’re building and monitoring your portfolio, here are some things to consider.

  • Portfolio building: The starting point to building a portfolio is deciding your asset allocation strategy, which means figuring out what percentage you want to invest in a variety of asset classes like large companies, fixed-income or international stocks. The Portfolio Review Tool helps you build a Target Model – your desired portfolio that fits with your risk tolerance, time horizon and goals.
  • Analyze your investments: Periodically, you’ll want to analyze your portfolio to see if it’s strayed from your target. The tool lets you do that. You can even analyze investments held outside of Scottrade.
  • Detailed investment analysis: Like many people, you probably have a variety of financial accounts that make up your portfolio. That can make it difficult to analyze your specific investments either individually or as a group. The tool lets you quickly see a detailed breakdown of how your portfolio is broken down within each asset class across all of your accounts. You also can scrutinize investments in a single account.
  • Find new investments: You might have a variety of reasons to want to buy and sell investments in your portfolio. Rebalancing your portfolio might be a primary reason. The Portfolio Review Tool can help you identify investments that fit with your Target Model.

You can decide whether to use a few features or dive in and take full advantage of the Portfolio Review Tool.

“It’s good practice for investors to periodically analyze the strengths and weaknesses of their portfolio so they can make more informed investing decisions,” Correnti said. “You can make that task easier if you can use a portfolio tool that allows for different views of your portfolio.”

Question: What part of portfolio management do you need help with?

Next Step: To understand more about asset allocation models, you can read 5 Models to Help Diversify Your Portfolio. Scottrade® clients can access the Portfolio Review Tool by logging in to their accounts.

The analytical tools, examples and strategies described are for information purposes only and their use does not guarantee a profit.None of the information provided should be considered a recommendation or endorsement of any specific investment, tool or strategy. The choice to use a specific investment tool or strategy should be based solely on your research and evaluation of risks involved, your financial circumstances, and your investment objectives.

The Target Allocation Models are designed to follow certain investment objectives, although there is no guarantee that these objectives will be met.

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