By Johnny Lee
Browsing through the financial maze of stocks, bonds and mutual funds can be a challenge. American Century Investments offers the following tips to give you the guide on building a profitable portfolio.
1. Know your objectives.
Consider how much money you need for your children's education or your retirement. Whatever your vision of the future could be, set goals and develop a concrete plan to achieve it.
2. Define your investment in the future.
If you are not planning to retire soon, you should have a portfolio that includes major investments in the long term. If retirement is just around the corner, consider a more cautious approach.
3. Determine your risk tolerance.
Determine your tolerance for risk and compare it to what you can afford. In general, the greater the need to invest, the more you can take risks.
4. Consult a professional.
In order to avoid financial pitfalls later, it is often wise to seek professional guidance in putting together the portfolio.
"Recent studies show that investors continue to take some of the most basic investment concepts, suggesting a greater need for financial advice and guidance," said Doug Lockwood, a Certified Financial Planner.
To help investors achieve their financial goals, American Century Investments has developed a program designed to help investors build and maintain diversified portfolios - at no additional cost.
This program is a combination of educational tools, advice, products, market knowledge and investment; the investment plan helps investors develop a personal investment. This plan is suitable for you if you are new to investing, looking for advice, but still want control of your combination investment and need help positioning your portfolios with a long term or if you need help understanding how markets work.