3 Key Steps For a Half-Year Portfolio Review

Hello, Personal Portfolio Managers! 

Many dream of breaking into a seven-figure net worth, but for me, it became a reality in 2012 after my first IPO. 

Fast forward to today, my portfolio income has replaced my paycheck, and with my private equity company, we manage $230 million in assets. 

This journey wasn't straightforward, but it has given me insights worth sharing.

Today, I want to share my simple steps to a Half Year Portfolio Review. 

This review is crucial for anyone running their portfolio as a business, aiming to build a multi-generational portfolio and achieve financial freedom.

Step 1: Assessing Your Investment Performance to Goals

One of the biggest challenges for tech professionals is staying on track with their investment goals. 

Getting caught up in daily work and forgetting long-term financial plans is easy. However, the solution lies in regularly assessing your progress.

When I started investing, I often felt overwhelmed by the sheer volume of decisions. But I learned that breaking down the process into manageable steps made all the difference.

I could make informed decisions and stay committed to my goals by consistently assessing my investments.

Assess Your Investments and their performance; where are you today?

• Take a moment to write down your current investment status. 

• Have you been saving and investing as planned? 

• Are your investments performing as expected? 

• Where are you succeeding?

• Where are you falling short?

These questions are crucial for ensuring that you're on the right path.

Remember, "Nothing measured, nothing managed." 

Regular assessment is the first step toward financial success.

Step 2: Evaluating Each Investment’s Health

A common misconception is that you can set it and forget it once you've invested.

Every investment needs periodic evaluation to ensure it remains a sound decision. If this misconception is not addressed, it can lead to significant losses.

As market conditions changed in 2019 and multifamily real estate stopped producing 10% cash-on-cash returns, I knew I had to make a change. Initially, I was nervous about pursuing a new asset class after spending time ramping up on the first one.

However, to reach my goals, I had to get uncomfortable.

This evaluation helped me make timely adjustments and build cash flow that allowed me to replace my paycheck.

Here are some points to consider during your evaluation:\

• Operator performance: Has the team managing your investment changed or where they are focused? 

• Leadership changes: Are there any significant shifts in leadership?

• Asset performance: How well are your assets performing?

• Geographic market changes: Have there been significant changes in the market where your assets are located?

• Economic changes: How do broader economic shifts impact your investments?

The brutal truth is that without regular evaluation, you might miss critical signs that your investments no longer align with your goals.

Lesson 3: Preparing and Executing Your Next Moves

Another common mistake is failing to prepare for the next steps after assessing and evaluating your investments.

This can limit your progress and prevent you from achieving your financial goals.

In the early days of my investment journey, I often hesitated to make changes. I was afraid of making the wrong move. But I soon realized that preparation and execution are crucial. Planning your next moves based on thorough assessments and evaluations can significantly enhance your portfolio's performance.

Consider the following when preparing your next steps:

• Should you buy, sell, or hold your current investments?

• Do you need to dispose of underperforming assets?

• Is it time to reallocate funds from one asset class to another?

• Are there new investment opportunities worth exploring?

For instance, if you notice an investment consistently underperforming, prepare to liquidate it and reallocate the funds to a more promising opportunity.

Executing these plans might be a long-term process, especially if you have a large and complex portfolio. However, taking consistent steps toward your goals will eventually lead to significant progress.

Now, let’s recap what we've learned:

• Assessment: Regularly measure your investment goals to stay on track.

• Evaluation: Continuously review the health of each investment to ensure they align with your goals.

• Preparation and Execution: Plan and implement strategic moves based on your assessments and evaluations.

Conducting a Half Year Portfolio Review is essential for anyone serious about building wealth and achieving financial independence.

Start your review today and take control of your financial future.

Currently, I am helping other tech employees perform portfolio assessments one-on-one.

If you are interested in what this could look like, hit reply and say “portfolio assessment.”

Tech Equity and Money Talk is the only weekly podcast showing you how to work for tech equity as a wealth-building strategy and how to manage the money that comes with it.

61 🎙️ Multifamily Market Trends 2024 with Michael Episcope

Michael Episcope co-founded Origin Investments in 2007. Origin Investments have ~$2 Billion of Assets Under Management.

He and his team have weathered various market conditions, including the financial crisis, the pandemic, and the sharp rise in interest rates in 2022 and 2023.

If you have or are investing in multifamily assets as part of your portfolio. Listen in as we discuss the state of Multifamily in 2024.

Where Do You Start Building Your Portfolio?

If you are wondering where to start building your portfolio, here are some past podcast episodes to help you get started.

Private Equity Investing Fundamentals:

If you are curious about investing in commercial real estate or private equity funds, start with this primer of alternative investments and private equity. Listen here → Alternative Investments Explained

Build a Portfolio to Replace Your Paycheck:

If you want to get a deep view into how I constructed a portfolio to replace my paycheck, then check this out here →   50/50 Portfolio Strategy

What are Investments That Generate Income?:

To be financially free, you need assets that generate income. In this solo episode, I review all the assets that can generate income for you.

Listen or watch the → Overview of Income Opportunities

Hear an Example of Running an Income Portfolio:

I always want to hear from people who have “been there and done that” to share real experiences of how things work. When it comes to cash-flowing portfolios, check out this great conversation →   Income Focused Portfolio with Pascal Wagner

Is there a System to Make it all Work? :

The more you learn, the more you will want to know how it all works together. I have created my Portfolio Operating System (Portfolio OS) to make it easy to learn and understand how to architect, build, and run a portfolio that can support you and your family for multiple generations.

This edition of Tech Equity & Money News outlines my Portfolio Operating System

I am currently developing a training program on building a portfolio as a multigenerational business.

Hit Reply with “portfolio” if you want to learn more.

When you are ready, there are 3 Ways I can Help You:

1.) Get started on your learning - 🎧️ Follow our Podcast

2.) Watch our Videos - 📺️ Subscribe to our Channel

2.) Build a Career or Money Strategy 🧠 Book a 1:1 coaching session

Disclaimer: This newsletter is for informational purposes only and does not constitute financial or career advice. Always consult with qualified professionals before making any decisions based on the information provided.