Which portfolio mix is ​​best for you?

When it comes to investing and / or personal financial planning, there is no such thing as a single size – suitable for everyone! Depending on age, needs, goals, priorities, risk tolerance, goals, etc., the most appropriate strategy can be determined, on a case-by-case basis! Your total assets, liquid assets, income (from a variety of sources), job security, reserves, and personal level / comfort level are important factors in determining the best path for you in terms of creating a personal, investment portfolio. With this in mind, this article will attempt to briefly review, examine, consider, and discuss what mixing may make the most sense for your particular combination, set of conditions, and factors.

1. Risk tolerance: One of the first things to consider is your personal risk tolerance. That means, in simple words, how you can balance, invest and be able to sleep at night! Many people confuse deadlines, especially when it comes to mixing, difference, growth and income. How often have you heard someone say that growth is an investment that they have held, not offered enough income, and / or return-oriented investments that do not provide growth / growth in prices, etc.? You need to consider how much risk they are willing, willing and / or able to tolerate and take!

2. Goals / objectives: Define, clearly, your individual goals and objectives when considering a mix of your portfolio. Some goals include: saving on a child’s education; creating a source, acquiring a future home; pension fund development; etc. It usually makes sense to carefully choose the right combination of investments for each goal. Achieving goals is usually easier / simpler when done over a longer period of time, so you can take advantage of the concept of averaging the value in dollars. This approach often minimizes the overall – market risk, because when purchases are made at a certain point, every month, market fluctuations become much less, relevant and significant!

3. Needs: We are personal and have our needs! Avoid trying Keep up with the Jones, because what might make sense to them may not make sense to you and what you need! Do you need growth, current income, future income or some combination, etc.?

4. Small against big – capitalization, capital: We often hear the terms, small – cap, against, large – cap. This refers to the amount of capitalization of an individual company, investment or mutual fund. The value, monetary stability and strength of any company can be a security factor, etc.

5. Bonds and preferred shares: Corporate bonds are debt that companies use to raise money / capital. Some are unsecured, but we generally consider secured bonds (bonds) provided by the finances of this company. So far, many believe bonds are safe, depending on the quality of a particular company. Preference shares are usually preferred forms of shares that regularly pay dividends. Most people who invest in these two types of investments are looking for a stable income. At the moment, because of record lows, interest rates, existing bond prices, are high because they were issued when rates were higher and the bond price is adjusted because it determines the overall yield.

The more you know and understand, the better you will identify a set of portfolios that can best fit your individual needs, goals and priorities. Become a smarter investor!