What are you doing with the hostas in your portfolio?

As both a financial planning professional and an avid gardener, I often find myself drawing parallels between the two. Recently, I was out in the garden with my hostas—those hardy, beautiful perennials that seem to thrive in any shady spot—and I couldn’t help but think about how caring for them is much like caring for an investment portfolio.

In the spring, hostas emerge as small shoots, growing rapidly as the days warm up. By summer, their lush foliage fills out, forming dense mounds. They’re in full bloom, and we’re capitalizing on that growth! But eventually, they become too large for their space. This is when gardeners split them—taking that big, healthy plant and dividing it into smaller sections. It may seem counterintuitive, even painful to disturb such a thriving plant, but splitting them helps rejuvenate their growth and prevents them from taking over the garden.

This process is a perfect analogy for rebalancing your investment portfolio.

Just like some hostas can overgrow and crowd out other plants, certain investments may outperform, leading to an imbalance in your portfolio. If left unchecked, this can increase your exposure to risk, just like letting one plant dominate the garden. Rebalancing is your way of "splitting the hostas"—trimming back the overperformers and redistributing resources to other investments that need attention.

It’s not always easy from an emotional standpoint. Looking at that lush, flourishing plant and deciding to dig it up and split it into smaller pieces can be hard, even for experienced gardeners. But it’s necessary for long-term growth. Each of those smaller sections will eventually grow into full-sized hostas, spreading beauty and balance throughout the garden. That’s exponential growth at its finest!

The same goes for your investments. Rebalancing forces you to sell some high-performing assets and reinvest in underperforming ones, following the classic “buy low, sell high” strategy. It helps maintain balance in your portfolio, so no single investment dominates and increases your risk unnecessarily.

Just as splitting hostas ensures they don’t overtake the garden, rebalancing prevents your portfolio from becoming too heavily weighted in one area. It’s a proactive step that allows your investments to flourish, grow steadily, and help you meet important financial milestones with confidence.

So, let’s take a holistic approach to our finances and gardens alike! Rebalance your portfolio, split those hostas, and watch both your wealth and garden grow! ??

If you’re ready to cultivate growth in both your garden and your finances, now is the perfect time to review your portfolio. Reach out for a complimentary portfolio review or a second opinion on your current asset allocation, and let’s ensure your investments are positioned to thrive for the long term!

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And if you're curious about the card boxes in the picture, I use them to suppress the grass rather than going through the effort of removing it manually.

If you’re interested in adding hostas to your garden, here is some helpful information. For the Love of Hostas - Salisbury Greenhouse - Blog

Did you know hostas are edible plants? Edible Hostas - Sienna Hosta

I haven’t tried it yet … I guess I am not brave enough. But if you are, please, share how your experience was.