Bio: Gretchen Tai

Gretchen Tai

Runs Hewlett-Packard's pension investments


Gretchen Tai 

Gretchen Tai runs Hewlett-Packard's pension investments. "Be disciplined and stick to your savings plan, and keep an eye on the total fees you pay for managing your portfolio," she says.

  1. Management & fees

"Fees matter, so you should be careful what you choose to pay". Whether you use active or passive management, keep the total fees you are paying as low as possible, ideally below 0.5%. A lot of financial advisers out there will charge twice that — on top of any fund fees you are paying. Have a think about whether you really need an advisor with all the information out there that can be found online.

"Many plan sponsors offer free investment education to their employees, and that's good place to start,"…"Don't pay for things you can get for free."

  1. Sample portfolio

Similar to David Swensen, Tai advocates greater diversification than most individual investors often achieve.

Gretchen Tai Asset Allocation

  1. Change your portfolio based on your age

Interest rates are low at the moment, therefore "a more flexible approach" to the traditional age-based rules on bond allocation could work. Tai says her portfolio mix is a good approach until you reach retirement. After which investors need to look at their total portfolio value and work out if it's big enough to live on along with Social Security, "then it's OK to reduce higher-risk assets such as stocks more quickly to 40%." If you haven't saved enough, the options aren't so good. "You might need to postpone retirement," she says.


How can FOLIO do the heavy lifting?

You can use a tool like FOLIO to help you with asset allocation and portfolio management. FOLIO saves you time, with live pricing and benchmarks to track how your asset allocation changes over time. You can easily use this reporting to then rebalance your portfolio the way you want, while also understanding the net worth and your financial situation. All of this is shown on our comprehensive dashboards.

If you’re looking to take control over your investments while also monitoring your net worth, then you need to give FOLIO a try. 


Sources: Chris Arnold on