It may come as no surprise that some of the most famous drinkers in history have been U.S. presidents.
Ulysses Grant was a known imbiber, often to extremes. Although it certainly didn’t seem to affect his work as a general. Lincoln is rumored to have said, “Find out Grant’s brand of whiskey and send it to my other generals.
Herbert Hoover, who presided over the passing of prohibition, had a very nice wine collection. But once the 18th amendment passed, his wife threw it all away.
And there was Richard Nixon, a fond consumer of Chateau Lafite Rothchild wine. He would openly consume it at state dinners, letting his guests think they, too, were drinking the fine French wine. But they weren’t. Waiters would cover the bottles with a towel. Who knows what they poured?
Nixon’s deception reminds me of a lot of mutual funds. You think you know what you’re buying, but once you study them, you learn reality is much different than perception. A large stock fund suddenly buys small stocks. U.S. funds buy international. And often, a fair percentage of the fund’s money sits in cash.
Studies show asset allocation is one of the largest factors in a portfolio’s success, but if that allocation changes constantly, how can an investor know if it’s a proper fit for her plan?
We study every mutual fund our clients hold. We examine things like turnover, management fees, style drift, and return to benchmark. Like wine, not all funds are created equally.
To learn more about this process, give us a call at 513-563-PLAN (7526) or click here to schedule online.
Regards,
Nikki Earley, CFP®