The Human Mind is a wonderful thing. It has built in mechanisms which allow us to cope with life as it unfolds. One of these mechanisms is our ability to categorize things. This ability to categorize is essential to our well being. For example, a tiger is nothing more than a big kitty, yet the tiger could easily eat us. Being able to quickly categorize the similarities and differences of these two kitties is essential to our longevity.
It is well known that babies as young as 2-months old can categorize. At 3 - 4 months old they can separate dogs from cats. And by the time our babies are 6 to 7 months old they can recognize and categorize images from a photograph. It is this built in ability to categorize that allows us to survive. And so it is natural for us to carry this innate ability into adulthood.
I see this daily in our work with our new clients. Their investments tend to be boxed in. See if this strikes a chord with you. I have a retirement account. I have an account set up for my kids' education. I have an aggressive account. I have a conservative account. I have a bank account. I have a money market account. I have a CD. I have an annuity. I have a 401K. I have an IRA. I have an account I inherited from my mother. I have a savings account for a new home. I have a real estate investment account.
Placing our investments into separate boxes seems logical and natural to us. Yet this simple process of separating our investment funds into these individual boxes, independent of each other, is one of the major reasons you may never reach your ultimate goals. After all, every investment in every box is yours, and every investment in every box should be viewed as simply your total investment portfolio.
An easy way we have been able to help our clients overcome this natural process of categorizing their investments into boxes, is to have them think of all these investments in terms of parts. This may seem silly at first, but if you can think of all your investments as individual parts, then the boxes are simply places where these parts happen to be stored. The next step is to take all of these parts and assemble them towards their intended purpose, say the construction of your "financial house". A house without walls is not a house. A house without a foundation will not withstand the next big wind. This is the essence of portfolio management, the process of assembling those individual investments into a portfolio that will ultimately become your dream house.
That is why Anderson Griggs keeps the "Portfolio Management" in the name of our company. It is to remind everyone that our job is to help you build and maintain your financial house. In order to accomplish this we have to know the parts, and just as importantly, know how to put all the parts together so that your goals are met.
Anderson Griggs & Company, Inc., doing business as Anderson Griggs Portfolio Management is a registered investment adviser with the US Securities & Exchange Commission. Pursuant to laws and regulations Anderson Griggs also maintains notice filing with several individuals state regulators including North and South Carolina. Anderson Griggs only conducts business in states and locations where it is properly registered or meets state requirements for advisors. This commentary is for information purposes only and is not an offer of investment advice. We will only render advice after we deliver our Form ADV Part II to a client in an authorized jurisdiction and receive a properly executed investment Management Agreement. Any reference to performance is historical in nature and no assumption about future performance should be made based on the past performance of any Anderson Griggs Investment Objective, individual account, or index. The authors of publication are expressing general opinions and commentary. They are not attempting to provide legal, accounting, or specific advice to any individual concerning their personal situation. Anderson Griggs Portfolio Management's office is located at 113 E. Main St., Suite 310, Rock Hill, SC 29730. The local phone number is 803-324-5044 and nationally can be reached via its toll-free number 800-254-0874.