The Power of a Healthy Life Portfolio

The health of the broad U.S. economy impacts all Americans; but for most people, thinking about the economy starts with their personal financial situation. When it comes to your finances, you may be saying to yourself, “I’m doing well, but could I be doing great?” Looking through the Life Portfolio lens can offer you a new perspective to answer that question.

To help connect the dots, the Life Portfolio approach offers investors an alternative way to think about the economy and markets. Specifically, it provides a snapshot of the U.S. economy from the standpoint of a typical American household using the three most important components—income, debt, and assets. For each component of the Life Portfolio, LPL Research developed statistics that show how conditions are today, as well as indicators of how they can be better (or worse) in the future. If we assess our own financial condition based on these three areas, considering both our current state and future prospects, we can better determine how the broad economic and market growth we’re seeing is affecting us.

We’ll take another look at the Life Portfolio in part 2 next week. You can also read more in the full publication, “How Healthy Is Your Life Portfolio?”