Success is in the system

Not to suggest getting in a rut is a good thing, but following a tested system streamlines how you run your practice. Authors Ron Carson and Steve Sanduski suggest five ways to help you build a working system and cut the fat out of your processes.

1. Refine your investment philosophy. Create a one-sentence philosphy that reflects your investment beliefs as a thesis for building portfolios.
2. Create several broadly diversified model portfolios. These can be further divided into more specific asset classes.
3. Develop a system for selecting which investments to use within each asset class. The authors suggest having at least two mutual funds or ETFs for each asset class on your buy list, and at least five individual stocks.
4. Create a system for monitering asset allocation and your approved securities list. Create a list of approved securities by asset class along with their performance over different periods. The authors suggest looking at week, month, three-month, year-to-date, one-year, three-year, five-year and 10-year periods to get a clear idea of how each investment performs.
5. Create a standardized proposal that allows for personalization rather than starting from scratch with each prospect.

Source: “Tested in the Trenches,” Ron Carson and Steve Sanduski