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Portfolio Management: Your Guide to Balancing Your Properties

Home River Group - Spokane - Tuesday, June 15, 2021
Property Management Blog

Are you using portfolio management to maintain and build your real estate investment account? To make sure you are leveraging this tool, you can hire an investment manager to take care of this important info for you. 

To learn more about what goes into portfolio management as well as what kind of benefit it offers, keep reading. In this guide, we will go over how this tool can help you with your investment properties and rental operations. 

What Is Portfolio Management? The Basics 

Porfolio management involves picking the types of investment that you will have in order to reach a certain goal. The process involves monitoring them and adjusting them for the best results over time. This works to form a cohesive investment strategy and to work towards a goal. 

Aspects such as risks tolerance and timeline will be considered. The top priority in the process is to allocate assets to have the right mix of investments by rebalancing them over time while minimizing taxes. There are two different types of portfolio management: active and passive. 

Active portfolio management focuses on a hands-on approach when it comes to making investment choices. Passive portfolio management works to track a broad market index to mirror the returns on the market over time. 

What Does a Portfolio Manager Do?

A portfolio manager focuses on creating an investment strategy that will meet the client's financial needs and their risk management. They will provide ongoing oversight over their client's portfolio so that they can adjust your holdings when needed. You can also handle your portfolio on your own but working with a professional can give you a more hands-off approach that allows you to get assistance from a financial expert. 

They will work with your financial goals, such as expenses you want to save for like retirement, a child's education, or a home renovation. They will determine how much money you'll need to save while also developing a financial strategy that will be appropriate for working towards your goal. They will also take into account any specific timelines you have, as having a flexible timeline or a set date that you hope to meet your goal by will affect the strategy they develop. 

This will determine how aggressive or conservative your investment strategy will need to be. They will also determine your tolerance for risks. The more risks you are willing to take, the more diversification or mix of assets you can include in your investment strategy. Additionally, the higher your risks tolerance, the higher the potential payoff will be. 

Take advantage of Portfolio Management Today 

If you're hoping to make a strong investment strategy that can help you manage and maintain your financial goals, portfolio management can be a great tool for doing so. You can either handle this on your own or hire a professional to handle your portfolio management for you. This is a great way to get a plan in order that will allow you to maintain and manage your investment properties. 

Are you looking for professionals that can help you with your property management in Spokane, Washington? Contact us today to get started.