From Dennis Miller of Casey Research:
A recent reader question is from Alex L, who is a member of my Super Sports Roadster club, a "collaborator-friend," and big help in getting the Miller's Money Forever project started:
"Dennis, you started actively managing your portfolio when your CDs got called in and you were sitting on cash. What do you suggest for people who already have a portfolio but might want to rearrange it a bit?"
It's a good question, and one that I've been asked frequently. Let me reinforce one critical point. Do not do what I did and start reading newsletters and buying into investments because they sound like winners. There is a good chance you'll just compound any problems in your portfolio.
A major component of my business career was consulting for small businesses. This was usually a three-step endeavor. First, the client recognized they had a problem and usually had a pretty good idea of what they needed to do to solve it. Second, they asked for help because they didn't know how to implement their solution. And that's where I stepped in: putting the solution into action.
Alex L's question presents a nearly identical situation. Many investors are uncomfortable with their portfolio balance, and most realize that the solution is rebalancing things in order to meet their goals, but they need outside help to rebalance.
Before you make any trades, start with the process. Take each and every investment you have and build your personal investment pyramid. The Money Forever portfolio is only a starting point. Each investor has to determine his own personal allocations. After you have done that, you'll find the holes that need to be filled, and where you're over-allocated.
There are five criteria which should be looked at for every investment...
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