As the number of accounts that we manage here at Integrity Wealth Management rises, the process by which we manage these accounts becomes increasingly important. For example, in my first year as an independent, I had less than 10 accounts under management. Having only 10 accounts made it easy when it came time to readjust portfolios. I would proceed from one account to the next and make all necessary changes in as little as a few hours. However, as the number of accounts reached 20, then 30, then 40, it became increasingly clear that a well-defined process was needed to do this efficiently.
In this post, I'll explain my new structure, where I draw the lines of distinction, what investments I am using, and how I facilitate the trades.
CATEGORY NAME: Auto Pilot
ACCOUNT SIZE: < $25,000
TYPES OF INVESTMENT(S): Mutual Funds
In the Auto Pilot group, I place the entire account into one mutual fund which invests in stocks, bonds and cash. It may be a conservative, moderate or aggressive allocation fund. (At this point, all are in the conservative fund.)
CATEGORY NAME: Auto Pilot +
ACCOUNT SIZE: $25,000 to $100,000
TYPES OF INVESTMENT(S): Mutual Funds and ETFs
With this group of accounts, I start with the allocation fund from the above mentioned category and add a few additional funds around the periphery. The additional fund categories include: Inflation Protected bonds, Global Allocation funds, Multi-Sector bonds, Currency, etc.
