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Building a portfolio

Get more sound guidance about building a portfolio with a good mix of asset classes.

03-04-2019

Video Transcript

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.

The information in this article was obtained from various sources not associated with State Farm® (including State Farm Mutual Automobile Insurance Company and its subsidiaries and affiliates). While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. State Farm is not responsible for, and does not endorse or approve, either implicitly or explicitly, the content of any third party sites that might be hyperlinked from this page. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. These suggestions are not a complete list of every loss control measure. State Farm makes no guarantees of results from use of this information.

Securities, insurance and annuity products are not FDIC insured, are not bank guaranteed and are subject to investment risk, including possible loss of principal.

Neither State Farm nor its agents provide tax or legal advice.

Securities distributed by State Farm VP Management Corp.

State Farm VP Management Corp. is a separate entity from those State Farm® and/or unaffiliated entities which provide banking and insurance products.

Bonds are subject to interest rate risk and may decline in value due to an increase in interest rates.

Diversification does not assure a profit or protect against loss.

AP2021/02/0202



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