Learn ... How to Invest !: The 5 Reasons Why Your Portfolio is Tanking

The chances are you're not as rich as you want to be, because others get rich off of you!

1st Heavy Correlation

That was little or too much of one kind of investment can create havoc for an investor. It is very common problem among many investors. During a portfolio diagnostic tests will show you where you are under and overweight in your portfolio. When was the last time your Advisor prepared it for you. The chances are your car has been looked at more closely, to your portfolio.

2nd No regular Tune ups

Automatic rebalancing is important for a portfolio to be regulated. Imagine never getting your car's wheels regulated, it will run off the road, would not it, and in a hurry! The challenge for many investors is twice (1) they must rely on their advisor to do so each quarter, and (2) these transaction fees can be cut in the overall performance of the portfolio. Instead, smart investors will find a counselor who provides this service automatically every quarter on a fee basis.

The 3rd The tax man Grab

Not registered funds have traded subject to capital gains. Although, capital losses are also available, but the charges involved erode your gains. One solution to keep these gains in your portfolio is to use a corporate class structure.

4th No written plan

You will never just jump in the car and try to run cross county with a map or a GPS unit to fall back on. Advisers to prepare, implement and follow an investment policy statement with the customer will ensure that all investment objectives are followed through to the exact measure, stripping away any feelings that may come into play. These policy statements also offer in plain view all fees and commissions so that nothing is released.

5th High management fees

Many investors are switching to advisers who offer fee for service and / or individually managed accounts, as many of the fess, which is paid could be deducted. These fees may be the same percentage as a mutual fund, but to have your account set up in a tax-favored way can allow you to get some of that money back in tax time. Have your adviser offer you choices in the way he / she manages your account?