Why do you invest?

Does your portfolio have a purpose?

Perhaps it's time to name your portfolio.

David G on naming the purpose of your portfolio 👇

"...it serves as a north star to bring us back and guide us." 

People invest for different reasons. Identifying and stating the purpose of your portfolio is a great way to stay on track.

What is your purpose?

• Nest egg for retirement

• College fund for the grandkids

• Down payment for a 2nd home

Establishing a goal allows you to create a strategy and stick to it. If you begin to wander or get anxious in a volatile market, you can revisit your goals and make decisions based on the portfolio's stated purpose.

What if my purpose evolves?

The only way to know if your purpose has changed is to know what it is in the first place.

Life happens, and we all evolve. Take a look at your goals and make sure they are still in alignment with your plans for the future. If not, give them a new purpose and adjust accordingly.

Will there be new money coming in or not?

This is the biggest dividing line between portfolios, and they need to be managed differently.

Like all portfolios, understanding the purpose is the key, but it's also essential to adjust your strategy accordingly depending on your funding.

References:

6 Principles of a Rule Breaker Portfolio