The second principle to discuss with a client is the concept of balance. Balance supersedes and transcends your opinion; if you violate it, you fail. Your asset allocation and portfolio management structure is subject to this principle. We must diversify portfolios geographically, stylistically, and by asset class to adhere to this principle of balance, thereby following the advice not to “put all your eggs in one basket.”

For additional information and resources on annual client review, please review the videos in this series.