Strategy Beginner: Steps to a Suitable Portfolio

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1.
What vital information does your goal give you?
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Both of the above. Your goal tells you both how long youll be investing and how much money you can put at risk.
2.
A portfolio might become riskier over time because _______.
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Stocks grow more than bonds and cash. They will take up more and more of your portfolio over time. Since stocks are riskier, they will raise the overall risk level of your portfolio.
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.
To determine whether your existing portfolio fits your investing blueprint, you should answer questions such as _______.
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All of the above. These are just some of the questions you should ask about your portfolio to make sure it fits your blueprint.
5.
A successful portfolio _______.
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Should contain investments that work together to help you reach your goals. A portfolio can be made up of "good" investments, but they may not work well together.