One of the fundamental areas of personal or business finance is a portfolio – but what is it, exactly? And why does it matter? Today, we’ll go over the basics of portfolios, portfolio management, and what you need to know.
What is a Portfolio?
Your portfolio is the collection of all your financial assets and investments. This includes stocks, bonds, real estate, art or other valuables.
What is Portfolio Management?
Portfolio management is the process of managing all of these assets and investments, tracking their value, and picking new investment opportunities.
Some people manage their portfolios on their own, but many turn to a wealth advisor to aid them.
What is a wealth advisor?
A wealth advisor is a financial expert that takes a broader look at your total finances – not just your portfolio, but also your current accounts, retirement plan, healthcare costs, etc.
Because a wealth advisor has a holistic view of your accounts and a deep knowledge of various investment opportunities, they can best advise you on where to invest further. This is an attractive alternative vs. doing all the research on your own, because you don’t have to become a financial expert yourself to see gains.
When you work with one of our wealth advisors, you’ll receive educated, advice about your financial risks. We’ll use financial tools to determine your exposure to relevant risks, then discuss cost-effective ways to manage them.
Greater Midwest Financial Group is a financial advisory firm serving St. Paul, Minneapolis, and the wider Twin Cities area. We specialize in wealth management, retirement planning, asset management, and other personal finance needs.
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