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4 Tips to Build a Successful Portfolio


It may be fairly difficult to find one's way through the complex financial landscape of stocks, bonds, and mutual funds. The following advice, provided by American Century Investments, will provide you with the knowledge necessary to construct a portfolio that generates profits.

* Be aware of your objectives. Think about the amount of money that will be necessary for your retirement as well as the education of your children. Set your sights on the future, whatever they may be, and devise a strategy for how you want to get there by setting objectives and developing a solid plan.

* Determine the time horizon for your investment. If you do not anticipate retiring in the near future, you should probably build your investing portfolio such that it contains more long-term assets. If you are getting close to retirement, you should think about taking a more cautious strategy.

* Determine your risk tolerance. Determine the degree of risk that you are comfortable with, then compare that to what you can afford. In general, the longer you have to spend for, the greater the amount of risk that you are able to accept.

* Seek the advice of a qualified expert. When building up a portfolio, it is generally a good idea to seek the advice of a professional in order to steer clear of any financial issues in the future.

According to Doug Lockwood, a certified financial planner, "recent research shows that investors continue to grapple with some of the most basic investment concepts, suggesting a greater need for financial advice and guidance." "Recent research shows that investors continue to grapple with some of the most basic investment concepts,"

On Plan Investing is a program produced by American Century Investments to assist clients in building and maintaining diverse investment portfolios at no extra cost. This program was developed with the intention of assisting individuals in meeting their financial objectives.

On Plan Investing assists investors in the development of a personal investment strategy by providing educational tools, advice, market insight, and investment products. This assistance is provided to investors regardless of whether they are new to investing, seeking guidance but still wanting control over their investment mix, need help positioning their portfolios with a long-term perspective, or need help understanding how the markets function.