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Portfolios 101: Steps to a Suitable Portfolio

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1.
A 40-year-old should put how much money in stocks?
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The amount is a matter of personal preference, based on the investors goal for the money. The rule of thumb would suggest that 40-year-olds put 40% of their assets in cash/bonds and the remaining 60% in stocks. But those percentages may be inappropriate, depending on an individual investors goal. Asset allocation is a matter of personal preference.
2.
When you rebalance your portfolio, what should you keep in mind the most?
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Your goal. All other things will need to follow your goal.
3.
A successful portfolio is one that is filled with great investments.
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False. As a rule, a successful portfolio contains investments that work together to help you reach your goals. A portfolio can be made up of "great" investments, but they may not necessarily work well together.
4.
To determine whether your existing portfolio fits your investing blueprint, you should, among other things, search for overlap among your investments.
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True. Searching for overlap will weed out unneeded redundancy.
5.
Why might it be a good idea to remove redundant investments from your portfolio?
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All of the above. Though a set of investments may be redundant, there are still some differences among them, which may make one preferable to keep over the others.