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  • Earl Johnson

Building an Effective Portfolio


Just as when starting any important or complicated project, building a portfolio successfully requires starting out with a goal and a plan for getting there. Whether your goal is retirement, the dream house, or your child's education. Whatever the goal, you should spend plenty of time thinking about what suits your goal and risk tolerance.

Your goals tell you how much time you have and how much risk you can afford to take. The more time you have to reach your goal, the more you can focus on asset growth, and take more risk. If you don't have a long time frame, you should concentrate on preserving capital. You're less able to afford a loss or a large set back.

Your specific portfolio make up or allocation is determined by your appetite for stocks and bonds and in what proportion. For instance, one time honored rule is to subtract your age from 100, and allocate that result as a per cent to stocks or other growth investments. This may be too conservative for some and too aggressive for others.

The important thing is to decide with a goal and a plan in mind.

At the risk of sounding a little trite; your goal is your destination, your portfolio is your car, and your plan is your GPS navigation system. Your financial is a very important trip, you want to keep wrong turns to a minimum.


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909 N 96th Street 

Suite 101

Omaha, NE 68114

402.392.1220

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The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

Securities offered through TradePMR, Inc. Member FINRA/SIPC. Advisory services offered through EverGreen Capital Management.