Essential Steps in Building Your Portfolio

Financial Direction, LLC

employer-plansYour portfolio collects your financial assets, including bonds, stocks, and funds. A balanced investment portfolio offers the growth you want at a level of risk that is comfortable for you. If you’re looking for assistance with building or maintaining your portfolio, working with an experienced financial planner in Tucson is the best way to create a portfolio that reflects your needs and goals.

Determine How Much You Can Invest

Building a portfolio requires the investment of some of your assets to reap the rewards you want. Thus, an important first step in planning your portfolio is determining the percentage of your current savings or income you are able to invest. Keep in mind that this amount can change over time, but the percentage of your finances you can invest at any given time will likely drive your investment strategies at that time as well.

Determine Your Risk Level

Investments are available with a wide range of risks and rewards; in general, higher-reward investments involve a higher level of risk, while lower-risk options offer slow but steady payback. A balanced portfolio often includes a mix of both, but you’ll need to determine the risk level with which you are comfortable before beginning to build your portfolio.

Determine Your Goals

Your goals are the most significant driving factor in your portfolio’s configuration. Thus, it’s vital to determine your goals before you begin investing. Some of the most common investment goals include retirement investing and college savings, but your goals may also include philanthropic causes or plans to accumulate the capital you need to start your own business. Regardless of your goals, it’s important to lay them out ahead of time so you can build your portfolio accordingly.

Your financial advisor at Financial Directions, LLC, can help you build the ideal portfolio for your investing needs. We invite you to check out our investor center or take a look through our financial services online, or contact us by phone at (520) 408-7777 to reach an advisor regarding investments, retirement, college savings, and more.

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