(Prosperity)
Define: Portfolio
Your portfolio is all of your financial securities – stocks, bonds, cash equivalents, as well as any fund in which you may have an interest whether of the closed, exchange-traded, mutual or any other variety. Portfolios are the sum of all the financial accounts you hold – those you manage, and those managed by your financial professionals.
Your portfolio is a reflection of you and your needs. When you, and possibly your financial advisor, build your portfolio, make sure your allocation is in line with:
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Your current financial goals
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The amount of time you have to reach those goals
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Your comfort level with investment risk
One key to designing your portfolio is assessment of your tolerance for risk; another assessment to make is why you are investing. These will be a major factor in your asset-allocation strategy - the spread of your portfolio divided among the wide variety of investment securities available. Your portfolio will move through life with you, with diverse holdings through each stage.
