Model Portfolios

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HI
I have been a member for two yrs and basically hold mostly the foundation stocks and a few dividend stocks from the list. I have a few questions about the Model Portfolios.
1. Do I buy each of the stocks or ETF’s listed in one of the portfolios to match it and keep the weighting the same?
2. How often do these portfolios get updated with buy and sell positions?
3. Will the weighting be changed if one asset goes up more then the rest?

thanks

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Asked on January 22, 2023 7:16 pm
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Hey there.

1. Not necessarily. Many people believe that these models need to be directly mimicked. They are called "model" portfolios primarily because they can assist someone in developing a more balanced portfolio by highlighting potential investments in particular areas. Realistically, if someone had literally no portfolio, they could take a cash position and mimic the entire portfolio. However this is a bit unrealistic for the vast majority of investors who are already going to have portfolios constructed. Liquidating their entire portfolio to follow a model entirely could just end up in excessive commission costs. So for the most part, a lot of people follow the buy/sell transactions in them, the strategies, and insights to new stocks we may highlight inside of them.
2. We are aiming to become a little more active with our model portfolios here at Premium. So while there is no hard set updates, you will see routine transactions posted in them as we see opportunities. However, we will be updating the portfolio documents at minimum once a month.
3. Yes, the weights will change depending on an assets growth. At this point, we could choose to rebalance the asset and place it elsewhere. You would be notified of this.

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Posted by Dan Kent
Answered on January 23, 2023 10:45 am