Account Management
Once you've established an investment strategy and created a long-term portfolio, it doesn't take much effort to keep your strategy heading in the right direction. In fact, maintaining your portfolio is sort of like maintaining your car. Most of the time your car hums along just fine. At regular intervals you ask your mechanic to do some routine maintenance. And every so often, you switch to a new model-something that better suits your changing needs.
In this chapter, you'll learn about account maintenance-reviewing, rebalancing, and occasionally rethinking your investment strategy. Let's get one thing straight right up front. Unless your idea of a thrill a minute is balancing your checkbook, this stuff may seem a little tedious. But make no mistake. It is very important. Taking an active role in managing your account may boost your performance and could add thousands of dollars to your bottom line.