5 Principles for a Well Managed Portfolio

How can you make your money grow and preserve it? Is it possible to guarantee your income will last your lifetime?

On today’s episode…

  • Engineering a portfolio to maximize growth and minimize risk.
  • What is your investment mission?
  • Do you know your risk style?
  • People are living longer, will your money last your lifetime?
  • What are your core priorities?
  • Diversification is important for maximum return!

Thank you for watching and we look forward to seeing you next time!


How can I make my money grow? How can I preserve it? How can I get income out of it that will last my lifetime?

These are the questions people ask me all the time. So, is there a way to engineer your portfolio to get the maximum growth and income at the minimum risk?

Hi everyone, I’m Steve Lewit and this is SGL TV.

And I believe there are 5 Principles of Portfolio Management that can get you where you want to go. So, let’s take a quick look.

Principal #1: What is your Investment Mission?

That’s right, you need to have an Investing Mission and here’s what it is: you should always get the maximum amount of gain, for the minimum amount of risk. Most people take too much risk to get the returns they are getting. They’re not getting paid for the risk they’re taking. Always invest with this mission in mind.

Principle #2: Build your portfolio to match your risk style.

Are you risk taker, a risk avoider or a risk manager? If your portfolio doesn’t match your risk style, for example, let’s say you’re a risk avoider but you have all your money in the market which is a risk taker’s approach, you’re going to get stressed out when the market goes down and 70% of all illness is stress related. So, always build your portfolio to match your risk style.

Principle #3: Know your time horizon.

People are living longer, often into their nineties and hundreds. Your money will have to last a long time and your portfolio has to be built to provide liquid money when you need it now and growth for the future so that you have money later in life. Don’t underestimate how long your life will last.

Principal #4: You need to know your investment priorities.

Take a few minutes and rank these core priorities in order of importance to you:

  • Income
  • Growth
  • Preservation
  • Legacy
  • Liquidity

And then make sure your portfolio is built to meet these goals in order of importance.

And finally, Principle #5: Is every portfolio must be diversified in two ways.

Across asset classes and across product classes. Optimized portfolios include market products and insurance products, not just one or the other, but a combination of the two working together to create efficiency and meet your mission of maximum return at minimum risk.

So those are my 5 core principles. Got it? Great! Now it’s your turn to put your money to work by putting these principles to work, then sit back and enjoy the results.