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Investing: When, and How Much?

September 12th, 2012 · blog, Guest Post

The traditional American family often wonders when the correct time is to begin an investment portfolio that provides solid returns. It is no secret that a diversified portfolio is the way to a solid wealth building strategy. Through strategic planning using John Labunski Investment Tools, the average American Family can expect a fully diversified portfolio that produces strong yields. However, new investors struggle with the perfect time in their working lives to begin building their investment portfolio.

Where to Invest for True Monetary Gain 

Profitable investment techniques are difficult to find these days, but certainly not impossible. Through a concentrated approach and reliable sources, the average investor can expect to find sound resources for building a truly diversified portfolio. Investment tools provided by John Labunski allow the average investor to build a portfolio that is not only profitable, but gives the investor a sense of comfort that their money is safe. A strong portfolio can include investments, such as targeted real estate investments, high-yield savings accounts or individual stocks.

Asset allocation is a critical part of investment success. The percentage of money available to invest hinges upon disposable income. However, there are numbers that work based on individual investors particular expectations. One traditional rule of thumb is 60 percent stocks, 30 percent bonds and mutual funds, and 10 percent cash. Of course, the investments all depend on the type of instruments available based on the amount of money investors are willing to risk. This is a true measure of asset allocation and a diversified portfolio. Investors must find individual investments that meet their particular level of risk.

Risk-Reward Scenarios 

Every investment contains a certain amount of risk. Minimizing risk requires planning and using the right kind of investment tools. The common theme among investment professionals is a full understanding that markets will fluctuate. Interest rates on certain investments will remain high or steadily fall. There is a lot of emphasis placed on wealth-building strategies that the average investor’s fail to consider. The most important is total net worth and the amount of disposable income available to hedge risk. A simple debt to income calculation along with a once a year check of an investors annual credit report easily hedges these risks.

Think and Act 

Putting money in a savings account and hoping for the best is not the secret to a diversified portfolio. The greatest investors in the world think, and then they act. Understand the amount of risk a truly diversified portfolio can handle, and then determine how much money can be shifted from each investment position. Saving money is certainly nice, but it will not lead to a true wealth-building strategy. Traditional working families need financial security, and this type of security requires thinking, then acting. However, new investors looking for the perfect time to build their portfolio must start their wealth building strategy immediately.

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