Whether we realize it or not, almost everyone
has a financial portfolio. I’ve got one. You’ve got one. Your friends have all got one. So
what is it? A portfolio is just a collection of your financial assets, whatever those assets
may be. If you were an artist, you’d keep your best work in your art portfolio. In the
same way, as somebody who earns money you keep your assets in your financial portfolio. Your assets are anything that adds to your net worth, such as mutual funds, stocks, bonds, or even cash. Yours may not
seem that big right now, but they’re like trees. They take time to grow. Most of us
open our first portfolio when we start a retirement account, usually at our first job. You and
your employer may both put money into that account. The money gets used to buy investments
like mutual funds, which are intended to grow over the years. How much can they grow? That
depends on how aggressively you invest. When we’re younger, most of us will have riskier investments that might
swing up and down but have historically shown growth over time. We won’t be retiring for
a while, so we have time to ride out these ups and downs. But in a few decades when we’re
closer to retirement, we’ll want stability and security, so we’ll tend to have more conservative investments.
They may not drop as much, but they may not grow that much either. A great portfolio fits
your own style and taste. Most investment accounts, including your retirement account,
have tools that can help you pick the funds. Go online and check out these tools. You’ve
already got the portfolio. Why not make the most of
it?