Why entering Holding Information is Beneficial To you
Your current portfolio holdings build the central starting point for your stress test.
dynamiX requires up-to-date values of your equity, bond and cash holdings in order to generate the best optimization recommendations for you. All recommendations are computed from up-to-date market data – so please make sure that your portfolio values are aligned.
This way, dynamiX can best account for stress scenarios that may impact your retirement investments.
Entering your portfolio holdings is also beneficial to you as an investor: it keeps you aware of your holdings since you have to keep track of them – you stay accountable for your investments and you won’t let go. The effort is worthwhile in the long-term although it may seem a bit tedious at the beginning – just keep doing it, it will boost your confidence as a retirement investor over time.
Why Holding Ratios Are key for stress Testing
The risk and return profile of your portfolio is the most important driver for your success as a retirement investor.
Scientific research has shown that it is determined by the ratio of your equity vs. bond vs. cash holdings of your portfolio. As long as your equity and bond holdings are well-diversified with mutual funds or ETFs, the ratios provide you a quick and easy way for controlling a large part of your risk and return profile.
How to enter Holding values
Tap on “Open” in the bar of the holding type you want to enter a value for.
You may then either enter the value directly by tapping on the value field. Tap on the check mark to make sure that your value will be used by dynamiX:
Or you can move the slider until your current value appears:
Where can i find the holding values that i want to enter
You get these values from your bank or brokerage account. Although summing up these values may seem tedious in the beginning, it ensures that you are completely aware of your investments and that you stay fully accountable for them. Or to put it in other words: if you are not aware of these values, you cannot control them.
To get the total value of your equity holdings, just sum up the following: – the total value of your mutual fund holdings (equities) – the total value of your ETF holdings (equities) – the total value of your single stock holdings
To get the total value of your bond holdings, just sum up the following: – the total value of your mutual fund holdings (bonds) – the total value of your ETF holdings (bonds) – the total value of your single bond holdings
To get the total value of your cash holdings, just sum up all cash that is available for investing.
Why can’t i enter any Currency information
We want to keep the usability as easy as possible – that’s why we don’t ask for currency information. Just enter the total values of your holdings in your home currency and dynamiX will take care of the rest.
Why Are my holdings limited to 150k
There are only technical reasons why there is a limit of 150,000 for each holding type.
In case your holding values exceed this limit, you can easily rescale them by division.
For example, if you are holding 1,500,000 in equities: just divide that amount by 10 and you are fine. But please make sure that all amounts in the “Portfolio” and “Retirement Plan” sections are divided by 10 then to get proper results.