Walking through the maze of stocks, bonds and mutual funds can be quite a challenge. Here are few tips to give you the jump on building a profitable portfolio.
* Know your goals: Consider how much money you’ll need for your children’s education or your retirement. Whatever your vision for the future might be, set your goals and develop a concrete plan for meeting them.
* Define your investment time horizon: If you’re not planning on retiring anytime soon, you might want to have a portfolio that includes more long-term investments. If retirement is just around the corner, consider a more conservative approach.
* Determine your risk tolerance: Figure out your risk comfort level and compare that with what you can afford. In general, the longer you have to invest, the bigger risk you can take.
* Consult a professional: In order to avoid financial pitfalls later on, it is often wise to seek professional guidance when putting together a portfolio.
Do your due diligence. Take some time to learn the investing terms. You need to understand what your investing in. NO ONE WILL CARE ABOUT YOUR MONEY LIKE YOU!!!