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Portfolios 101: Steps to a Suitable Portfolio

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1.
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.
2.
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.
3.
When figuring out whether your current portfolio matches your pattern, which question should you NOT ask?
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How did my individual investments do last week? When examining your current portfolio, dont worry about the short-term performance of individual investments. Instead, focus on how these investments are--or arent--working together. Ask which investments are your core investments, and whether you have a lot of overlap among your investments.
4.
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.
5.
You will want to keep tabs on your individual investments in order to make sure theyre _______.
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Still filling their original roles in your portfolio. Changes in management, style, and other factors can alter how well your investments are working for you.
DONE