Structuring an investment portfolio is an individual matter. Each investor has his or her own unique financial goals, tolerance for risk, time frame, investment experience, and different amount of money he or she wishes to commit. Your portfolio should be the product of a well-executed investment plan that you've reached by consulting with professionals who are thoroughly familiar with your personal circumstances and expectations.
Many of the questions and concerns voiced at my "Informed Investor" seminars deal with the exasperation of investors who are attempting to structure their portfolios. The source of this frustration is the vast number of options investors must choose from. However, by managing risk through diversification and asset allocation, and by maintaining a long term perspective while still focusing on short-term needs, your investment journey will be smoother and less stressful. And, when you look back after reaching your goal, the trip will have been worth it.
What are your most important long-range goals? Building wealth? Total financial independence? Planning for retirement or college for your children and grandchildren? As your personal situation changes, so may your investment objectives. Realize that you are the author of your plan for financial security, and you can modify this plan as your long-term prospects change. (Question 1 to 22)
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