When it comes to investing and/or personal financial planning, there is no such thing as one size fits all! Depending on age, needs, objectives, priorities, risk tolerance, purposes, etc., the most appropriate strategy can be determined on a case-by-case basis. Your total assets, liquid assets, income (from a variety of sources), job security, reserves, and personal comfort zone/level are all significant factors in determining the best path forward for you in terms of building a personal relationship. , investment portfolio. With that in mind, this article will attempt to briefly consider, examine, review, and discuss which combination might make the most sense for your specific combination and set of conditions and factors.

1. Risk tolerance: One of the first things to consider is your personal risk tolerance. That means, in simple terms, how would you balance, invest, and be able to sleep at night? Many people confuse the terms, especially when it comes to mixing, the difference between growth and revenue. How often have you heard someone state that growth investments, which they had, did not provide enough income and/or income-focused investments do not provide growth/increase in prices, etc.? One must consider how much risk they are ready, willing and/or able to tolerate and accept!

2. Objective goals: Clearly identify your individual goals and objectives when considering your portfolio mix. Some goals include: saving for a child’s education; creating a source, to buy a future house; develop a retirement fund; etc It usually makes sense to carefully choose the right mix of investments for each objective. Achieving goals is generally easier/simpler when done over a longer period of time, so one could take advantage of the concept of dollar cost averaging. This approach often minimizes overall market risk because when buying is made, at a specific point, every month, the market fluctuation becomes a lot: minor, relevant, and significant!

3. Requirements: We are individuals and we have our own needs! avoid, try to, Keep up with the joneses, because, what might make sense, for them, might not, for you, and what you need! Do you need growth, current income, future income, or some combination, etc.?

4. Small, versus, large – Cap, equity: We often hear the terms, small cap versus large cap. This refers to the amount of capitalization, of the individual company, investment or mutual fund. The value, monetary stability and strength of any company can be a factor in security, etc.

5. Bonds and preferred shares: Corporate bonds are debt that companies use to raise funds or capital. Some are unsecured, but we generally consider them covered bonds (obligations), which are backed by the finances of that company. So while many consider bonds to be safe, that depends on the quality of the specific company. Preferred shares are generally preferred forms of capital and pay a regular dividend. Most people who invest in these two types of investments are looking for consistent income. Right now, because of the all-time low, interest rates, the prices of the existing bonds, are high, because they were issued when the rates were highest, and the price of the bond adjusts because it determines the total yield.

The more you know and understand, the better you will determine the portfolio mix that might best meet your individual needs, goals and priorities. Become a smarter investor!