Those of a certain vintage will recall days of keeping much of the data by hand. Today the novice has available much more than the institutional investor of even 15 years ago. The trick is to learn to use it.
I tend to use Schwab, so I'll illustrate it here; but similar tools are available at most major brokerage firms. But again, I find that people tend to approach brokerage inline sites like the old VHS systems where we learned how to play a tape and that was about it. We were ignorant of its other functions.
It is easy to get on Schwab, consolidate your accounts, and select a model portfolio. The model portfolio, in turn, will specify targets for various classes of assets. For example, it will specify a target for small cap stocks. Then one of the important tools is the asset allocation pie chart and table which shows you how far off target you are for each asset class both in dollar terms and percentage terms. In other words, it shows you where you have to take action and by how much to get closer to target. It simplifies the whole process of rebalancing.
Suppose you want to go one step further and drill down to see a listing of assets by account and sector? Click "Schwab Portfolio Checkup," "View Holdings," and "Asset Class Details." You get this table for each asset class.
CLICK TO ENLARGE Notice the information provided. Here we have "Large Cap Funds." You get the "gross expense ratio," the "asset class," "% of portfolio" etc. Also the account numbers, which have been erased here, are provided.
Notice the "multi-class" funds. These are allocated to appropriate sectors on the basis of Morningstar breakdowns.
Learning to use this technology simplifies portfolio management and is worth the time investment.
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