An investment portfolio is a collection of different types of investments or asset classes, including stocks, bonds, cash and other securities. “Investment portfolios are appropriate for anyone who wants to grow their income or financial nest egg in the pursuit of a financial goal,” like paying for college, buying a home or funding retirement, says Karyn Cavanaugh, a financial adviser with Carolinas Wealth Management
If your primary focus is to achieve your long-term financial goals, then selecting the appropriate asset allocation – or mix of investments – for your portfolio is very important.
You can do this by choosing a portfolio objective. Before you select one, we’ll want to consider the following:
- Your goals
- How comfortable you are with risk
- When you’ll need the money you’ve invested
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It can also be helpful to look at model portfolios to give you a framework for how you might want to allocate your own assets.