How To Create an Investment Portfolio in Your Early to Mid-30s

Investing is a great way to augment your income without having to put in too much work and effort. Some people think that it takes plenty of time and experience to invest. You can, however, start investing using the money that you have earned by the time you are in your early to mid-30s by putting it in an investment portfolio. Here’s how.

  1. Goals. Start by creating a list of goals and objectives that you want. For example, you can make retirement a goal for your investments. At present, analysts say that the average person will need a retirement fund of two million dollars to live comfortably past retirement. This is one of the best goals that you can make for your retirement. Apart from retirement, you can also have other goals such as a new house in ten years, a new car, or money for your children’s schooling.
  2. Resources. Next, use all of the resources that can help you make the best investments. Remember that all types of investment will entail some type of risk. Because of this, be sure to know the game before you even start playing it. One of the people that you should turn to is the financial advisers. These people may have a small fee for consultations, but you get top advice from people who have been in the game and who know the details of investing. Also read up articles from financial magazines and reports, to be updated on the latest trends in stocks trading.
  3. 401(k) Plans. Most companies offer a 401(k) plan where you get better and cheaper investments with better returns, if you are an employee of the company who has put up stocks for sale. This is a great way for companies to keep the money within the company’s members, while generating capital for further business. these types of plans are not only easy on the budget, but are a great starting point for investments since you know yourself just how well your company is performing and you of all people will know how to trust your company.
  4. College funds. You should also set aside some of the earnings from the investments into college funds and mutual funds that your children can benefit from in the long run. Keep in mind that college these days will cost several hundred thousand dollars. Factor in inflation and the rising cost of basic commodities, and you get a picture of just how much you need to start using your investment portfolio to ensure your children’s schooling.
  5. Blue chip stocks. When it comes to actual investments, the blue chip stocks are the best option. Blue chip stocks are from companies that have slow but stable growth, and who have proven their stock’s value in the long run. these will not give you high returns the way internet startup companies will, but your money is safe and long term returns are more certain when investing in blue chip stocks.

Finally, make sure that you diversify your investments by investing not only in one field or industry. As much as possible, you should have an investment on as many industries as possible. This is a safety mechanism, since not all industries will fail simultaneously.


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