PRISM: Prioritizing Your Goals

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  • 1.  Identifying Your Investment Management Preferences: Lesson 3

    Posted 02-03-2022 15:29
    Edited by Jenna Brashear 02-03-2022 15:33

    Lesson 3: Identifying the Impacts of Additional Constraints



    Reflect 

    Now that you've considered and listed the types of accounts you currently hold, it's time to consider any other constraints or restrictions you have that may influence who manages your portfolio. 

    These constraints may include:  

    • How much time you are able to commit to managing your portfolio 
    • How interested you are in selecting your own assets versus letting someone else choose them for you 
    • What your individual comfort level is when it comes to researching and selecting potential investments 
    • How much education and resources you have on regarding asset management
    • How much money you've currently invested as well as what you plan on for the future

    Identifying these remaining constraints will help you identify you should manage your portfolio. 

    Engage and Participate  

    Use the video from Lesson 1 as well as the worksheet during this activity. Once you've reflected on your overall constraints, we encourage you to participate in the two questions below:  

    1. List the top two constraints you think are the most important to consider when it comes to choosing your investment management preferences. 
    2. When you first set up your portfolio, did you consider these two constraints you listed above, or did you choose your management preference based on other factors? 

      Example 

      1. Time and wealth are my top two constraints when it comes to identifying who should manage my investments. 
      2. No, I did not consider these two constraints and chose based on what my friends/family suggested at the time. I wish I had thought more about how much time it was to manage my own investments as well as how much money I was planning to invest. 

      Click here to access the Identifying Your Investment Management Preferences worksheet.


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        Jenna Brashear
        AAII Community Manager
        Chicago, IL
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      1. 2.  RE: Identifying Your Investment Management Preferences: Lesson 3

        Posted 02-11-2022 11:20
        I think time and interest are the 2 most important constraints.  You will learn what you need to know if it interests you, but you do need to be able to allot the time.  I'm definitely the type of person who would rather seek out answers and make decisions for myself than rely on a professional.

        I knew very little about investing when it came time to set up my work retirement plan, but I did have access to the AAII Guide to Mutual Funds, so I relied heavily on that.  I didn't feel constrained by the fund choices in the plan because there were so many and I knew I wanted to keep my portfolio simple.  Over the years as I learned more, I made minor refinements.

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        JEAN HENRICH
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        Original Message


      2. 3.  RE: Identifying Your Investment Management Preferences: Lesson 3

        Posted 02-20-2023 13:52

        I think knowledge will impact my management preference the most - both the knowledge I have and the lack of it.  The knowledge that I do have gives me the confidence to learn what I need to know, to manage our portfolio on my own, and without the help from a professional advisor or planner.  I consider myself experienced enough to negotiate my way through life itself, so why not my retirement? 

        You don't know what you don't know so there may be a point on the learning path that steers me back to an advisor or planner. 

        The second for me is not on the list above.  The small amount of mutual funds available in our 401(k)s limits me considerably.  The low cost of managing the funds are attractive but the small pool of mutual funds may not be enough now.  The need to branch out further into the investment world is an important consideration in determining my management preference.   I will need the knowledge to do this myself or hire someone to do it for me.  I don't think letting it just sit where it is will work for us in this stage of our life.



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        RICHARD
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        Original Message