How to Change Portfolio Aggressiveness

The two main options for adjusting the aggressiveness of your investment account are to increase or decrease the amount of cash held in your account or switch to a different model portfolio.

Adjusting the Cash Level

Change the value in Box #2 of the Shares-to-Trade worksheet.
  1. Increase the value in Box #2 to reduce aggressiveness.
  2. Decrease the value to increase aggressiveness
This option works well in a crisis because you can change the aggressiveness quickly.

Remember to always have at least 3% in Box #2. In environments with big price swings (like the Corona Crisis), it should be higher, say, 5%.

Switching to a Different Model Portfolio

You can also select a different model portfolio.

On the scatter diagram...
  1. Model portfolios on the right of the chart are more aggressive
  2. Model portfolios on the left are less aggressive

On the list of model portfolios...

You can reduce aggressiveness by switching to the target weights of the model portfolio lower on the list.

You can increase the aggressiveness of your account by switching to the model portfolio higher ont his list.

The switching model portfolio option makes more sense outside of crisis when you simply want to adjust the aggressiveness of your portfolio over the long term.

Please contact me with questions.