Chapter 7: Building your portfolio
A portfolio is simply a collection of all of your investment assets in one place. Keep a good mix of asset classes: stocks, bonds and cash equivalents to help you reduce the effects of a volatile market.
Developing investment patience is one key factor to building your investment and retirement portfolios. Your portfolio will take time to develop and mature. Keep a long-term perspective in mind (especially for retirement) and monitor your investments. Over time, you'll make the appropriate adjustments to align with your objectives.
If you experience a major life change, you should reassess your investments and make changes to adapt your strategy to your new situation.
Something to consider as you’re building your portfolio is to educate yourself about the investments that are available in the market, and the level of risk each of them hold. You can then choose different types of investments depending on your needs.
If you want to learn more about investments, please visit the U.S. Securities and Exchange Commission website.
Your chapter 7 checklist
- Watch the Building Your Portfolio video above.
- Download the Just the Facts: Investing worksheet.
- Start building your investment portfolio.
Take a look at the variety of Mutual Funds State Farm® has available.