MIKE COADY

Growth Expert | Business Excellence | People Transformation
Mike Coady was appointed Chief Executive Officer of swissglobal in 2018, a position to which he brings a strong financial background and experience across a variety of roles. Mike is a skilled business strategy and growth leader, coach and motivator. He is a people’s person known for his ability to inspire teams towards excellence. He mentors his people and departments to transform their passion into outstanding results and long-lasting relationships with their clients.
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What are the key considerations when constructing a portfolio?

Mike CoadyGeneral What are the key considerations when constructing a portfolio?

What are the key considerations when constructing a portfolio?

When it comes to building a complete and effective portfolio, there is plenty to think about and to plan for. Many of the steps you take will be based on your long- and short-term goals. This will differ from one person to the next. However, there are several key steps you’ll need to take to get your portfolio established and building wealth for you and for your future.

#1: Know where you are and where you are going

It is important to take stock, so to speak, of where you are. Consider what type of retirement plans and investments you already have (and how well they are doing) as well as any assets you own. Then take a look at where you want to be. It is important to know what you want to save for retirement based on the types of experiences you plan to have once you do retire.

#2: Establish a retirement fund

Perhaps everyone should do this as soon as possible. A retirement fund helps you to structure your financial goals while putting even a small amount of money away each month to cover retirement needs. Doing this now allows plenty of time for your wealth to build, thanks to compounding interest.

#3: Consider your level of risk tolerance

Before you can determine where you want to put your money, you have to realize you have a risk tolerance. This is the amount of risk you are willing to take on. If you are older and nearing retirement, you may not want to take on a lot of risk and put your money on the line. If you are younger, those higher-risk funds can look very good because you have time to recoup any losses. Also consider your personal views and financial stability.

#4: Develop an investment portfolio based on time and risk

Work closely with a financial planner to create a portfolio that addresses your concerns. This includes a combination of stocks, bonds and funds that create the level for risk that is right for you with a return that matches that risk. Your financial planner will indicate investments that may be ideal to you in each of these situations. You’ll want to work on a plan over time, making changes as needed.

#5: Add to your wealth

There are several key steps to portfolios, and not all of them centre around stocks and investments. You’ll also want to build wealth in other means. Don’t use credit cards or high-interest loans as they cut into your earnings and long-term goals. You’ll also want to consider purchasing real estate or other valuable items that help to keep your assets lucrative. The key here is not to put all of your money into a specific area of investment. By diversifying, you’ll be able to absorb any losses easier and continue on your path to financial freedom.

From time to time, come back to your portfolio to make adjustments. Working with a deVere Group financial adviser can help to make this easier to do. He or she can monitor your portfolio for changes that could be worrisome or beneficial. You’ll also want to continue to build your wealth over time, investing consistently in your portfolio. The more work you put into it now, the better the long-term goals and outcomes will be for you.d

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Mike Coady
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