Portfolio Constructions
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All four Holland Portfolios are broadly diversified across a wide range of asset classes, reflecting the Advisor's allocation methodology. Individual portfolios are weighted somewhat differently according to style – aggressive, neutral, balanced or conservative.

Of special note: whenever available, the Advisor strives to include "value" classes. Currently, more than 60% of the equities portions of all Holland portfolios are composed of value stocks.

A fixed asset class-weighting is established for each Holland Portfolio, and is maintained by rebalancing on a quarterly or yearly basis. As new asset classes become available, the Advisor may incorporate them in an appropriate ratio. Tax-favored funds may also be incorporated when appropriate.

Aggregate turnover for a portfolio should be less than 20% per year, as the Advisor does not participate in market "timing."

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A word about time horizons... and expectations

How much to invest? In what type of portfolio? And for how long?

There are many rules of thumb. Some have an arcane mathematical basis. Others involve little more than a pie-chart technique. They can be found online or in 401(k) pamphlets and the like. And to a degree, they're helpful.

But every Holland investor is unique. Expectations vary. Life exigencies grow and evolve. Many of you are accustomed to success.

The goal is to be properly invested all the time, not just when you reach a certain income bracket … or when the market is hot. And in determining your personal time frame for an investment option, the best method is the oldest: common sense.

Generally speaking, the longer your horizon – 10 years or more – the more aggressive you can afford to be in your investment strategy. This means investing proportionately more in equities (stocks), relatively less in cash or bonds.

Conversely, the shorter your time frame – say, 5 years or less – the more balanced or conservative your allocation ought to be.

But please note: aggressive doesn't mean reckless; and conservative shouldn't mean timid. Rather than minimize your investing expectations, minimize your volatility.

The objective of every Holland Portfolio is to achieve consistently superior performance, with reduced relative investment risk, by means of an allocation methodology designed to minimize volatility. But tolerance or comfort-level even for reduced relative risk depends on many variables and life circumstances.

This is why we offer you four distinct portfolio styles.

Why Invest in Equities?

It's the most fundamental question for every new investor. Why take the risk? Isn't my money safer in a bank CD … or even in the mattress?

Answer: just as life holds no guarantees, investing in equities and bonds is not risk-free; but the far greater risk is not investing in stocks or bonds at all. The reason is the steadily corrosive impact of inflation (see the chart). Consider these facts:

Over the past 75 years, inflation has averaged 3.1% annually. In this same time, keeping your money in a bank savings account or a CD would have averaged 3.9%. Subtract for inflation … and you'd have less than a 1% annual return!

This is not to say stocks alone are a panacea. But the wealth-building value of investing in a properly-diversified portfolio - over time - is inarguable.