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Portfolios 101: Steps to a Suitable Portfolio

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1.
When rebalancing your portfolio, it is a good idea to weed out redundant investments.
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True. When you have redundant investments, one of them usually has lower expenses and a stronger long-term risk/reward profile, which can make it an advantage.
2.
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.
3.
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.
4.
To determine whether your existing portfolio fits your investing blueprint, you should, among other things, identify your core investments.
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True. Your core investments will be the ones that are central to your portfolio.
5.
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.