This website uses cookies to collect usage information in order to offer a better browsing experience. By browsing this site or by clicking on the "ACCEPT COOKIES" button you accept our Cookie Policy.

Portion Control Isn’t Just For Meal Time


Visit: BlackRock


Head of U.S. Wealth Advisory at BlackRock

Building a financial fitness plan has a lot in common with how we manage our diets. Martin explains.

Late last summer, I returned to New York after two weeks at the Delaware Shore. Oddly, I felt horrible. I was at the highest weight of my life, with sluggish energy and general malaise. In fairness, for years, I pushed health and fitness behind work, believing that one had to come at the expense of the other.

I needed change and tangible action to help me structure a path forward. I declared the balance of 2018, the “Fall of Fitness” and focused on some basics: exercise, sleep, nutrition and, perhaps most importantly, portion control.

I chose pre-portioned meal service for a while, and still use it for lunch. I got a food scale, even while mocked by some family and friends! I have spent a year getting an intuitive sense, through trial-and-error, of what good portions look like. (Some of my favorite visual cues for portion control are from the Mayo Clinic website.) With exercise and diet, I dropped about 30 pounds, and am now aiming to add weight back in the form of lean muscle mass.  I feel much better too.

How to fill your investment plate

What’s this all have to do with investments? There are investing lessons to be learned from portion control and macro-nutrients; macros are the protein, fat and carb building blocks of nutrition. Investors often miss the idea of portion control. We ought to think of our overall investment portfolios in different portion sizes. We ought to be disciplined about the “PPP” too: the portion’s portfolio purpose.

For example, one PPP should be emergency funds: say, six to 12 months of rainy day, emergency money that stays invested in bank-guaranteed products at some reasonable yields. Certificates of deposit (CDs) and high-yield savings accounts can be useful tools for this portion. Another PPP might be a consumption goal, such as a home purchase against some timeline. Here a mix of stocks and bonds can help pave the way, typically though open-end mutual funds or exchange-traded funds (ETFs). Retirement is yet another PPP, aiming to deliver growth that can be translated into stable income to be spent down in retirement.

Wagging the dog

My point is that most personal investors often let the tail wag the dog. Investment decisions should be guided by the purpose of the investment, and less so today’s valuations or what’s hot.  Spend some time first drawing up portion sizes. Then it’s easier to decide the mix of investments that go on that plate. When working with a financial advisor, try to work up some portion sizing questions as a way to review your overall investment portfolio and broader financial planning.

Last observation is about lazy versus recreational money. I still let myself work in “cheat” meals: dessert, a great bottle of wine and I am passionate about ice cream. I think the same can apply for investments. Some recreational money to play the markets is fine. Just portion it out sensibly. It’s about what you do – in eating and investing – most of the time that counts. But, recreational money is different than lazy money. Lazy money is the money that builds up because you’re not disciplined about portions. When dividends and cash build up in your brokerage and retirement accounts, get it back invested in line with your selected portions.  And, your investment goals will change as you go through life – same as your health and fitness — so re-apportion from time to time to reflect what you know and where you are going.

We do know that financial and physical well-bring are related. But, there are basic health and fitness disciplines that we ought to apply in our financial lives as well. Portion control can be a valuable guide for building toward your financial fitness goals.

Originally Posted on September 11, 2019 – Portion Control Isn’t Just For Meal Time

Investing involves risks, including possible loss of principal.

This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are as of August 2019 and may change as subsequent conditions vary. The information and opinions contained in this post are derived from proprietary and non-proprietary sources deemed by BlackRock to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by BlackRock, its officers, employees or agents. This post may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this post is at the sole discretion of the reader. Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

©2019 BlackRock, Inc. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc., or its subsidiaries in the United States and elsewhere. All other marks are the property of their respective owners.


Disclosure: BlackRock

©2020 BlackRock, Inc. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc., or its subsidiaries in the United States and elsewhere. All other marks are the property of their respective owners.

Disclosure: Interactive Brokers

Information posted on IBKR Traders’ Insight that is provided by third-parties and not by Interactive Brokers does NOT constitute a recommendation by Interactive Brokers that you should contract for the services of that third party. Third-party participants who contribute to IBKR Traders’ Insight are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.

This material is from BlackRock and is being posted with permission from BlackRock. The views expressed in this material are solely those of the author and/or BlackRock and IBKR is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

trading top