Dear “Wondering About Investing”, Have you ever wondered, “What is an investment portfolio?” Perhaps you think it is something that only millionaires and billionaires have. Perhaps you think that you will never be able to have one. Or, perhaps you have never even heard of an investment portfolio. Well, you definitely need to be aware of them
.
So, let’s get into today’s topic.
What is an investment portfolio?
An investment portfolio is a collection of financial assets.
What is an Income Portfolio?
An income portfolio is a collection of assets that you buy and that will produce an income on a regular basis. It is a type of investment portfolio.
What are some types of income portfolios?
When it comes to generating income on a regular basis, some examples of portfolios include income portfolios and real estate portfolios.
What is in an Investment Portfolio?
Examples of things that can be found in an investment portfolio include individual stocks, ETFs, bonds, mutual funds, and REITS.
What are the 3 types of investment portfolios?
Basically, there are three styles of investment portfolios.
Specifically, the 3 styles of investment portfolios are those that focus on growth, income, or value.
What Is a Growth Portfolio?
Specifically, a growth portfolio is a stock investment portfolio created with a primary purpose of gaining capital appreciation. This means that in contrast to buying the stock for its dividend payments, the stock is bought because you expect the stock price to increase after you purchase it. The stocks in a growth portfolio have little to no dividends. Instead, growth stocks tend to be emerging companies with higher growth prospects. So, instead of paying dividends, these emerging companies use their earnings to continue to grow their businesses.
What Is an Income Portfolio?
An income portfolio is a stock investment portfolio created with a primary purpose of creating cash flow on an ongoing basis. This means that in contrast to buying the stock for its price appreciation, the stock is bought for its dividend payments. In addition to dividend-paying stocks in an income portfolio, there can be other investments such as bonds and REITs.
What Is a Value Portfolio?
A value portfolio is created primarily with stocks that are considered value stock. Specifically, this means that the stock added to the portfolio are considered undervalued stock at the time that they are added to the portfolio.
Why Should You Have an Investment Portfolio?
Having an investment portfolio is important because it is how you can start and grow another source of income. Not having more than one source of income can slow your journey to wealth. On the other hand, having more than one source of income can speed up your journey to wealth. This type of assets creates a form of passive income, which means that you start building and growing it while having active employment. Ultimately, even if you do not have an active job, if you have an investment portfolio, it can make money for you while you sleep.
Who Should Have an Investment Portfolio?
Everyone should have an investment portfolio. A lot of money is not needed to start one. The important thing is to get started as soon as possible because time is a key component of being able to grow this type of asset.
Who Can Start an Investment Portfolio?
Anyone can start an investment portfolio as long as you are at least 18 years old.
A minor may have an investment account if the account is started by a parent or guardian.
Where Can I Start an Investment Portfolio?
Investment portfolios can be started at traditional brokerage houses, such as Fidelity, Schwab, and Vanguard. Or, you can start one using an online investment app such as Robinhood. I love Robinhood! It is great for people who are comfortable with the Internet. Also, Robinhood is very user friendly and allows you to start with as little as $1.
What Banks Offer Investment Accounts?
Not all banks offer investment accounts. Some of the banks that offer investment accounts include: Goldman Sachs, JPMorgan Chase, and Bank of America Merrill Lynch. Ally Bank, which is an online bank, also offers investment accounts.
If you don’t already have an investment portfolio, I hope that you start one soon.
Hugs,
Rich Mom
P.S. Please don’t wait to start an investment account. The earlier in life you start and build this type of account, the more time the asset has to grow.
Would you like to get more ideas about getting started with investing? Check out:
A Small Passive Income Is Better Than No Passive Income
Start Creating Passive Income Today
What is a Dividend Aristocrat?
Looking for financial resources? Check out the Rich Mom Poor Kid Resources Page.
Who is Rich Mom?
If you’re wondering who Rich Mom is, check out my “About Rich Mom” page.
Also, please note: I am not an investment advisor. Always do your own due diligence and research before investing. Check with your own investment advisor.
The information shared here is not intended as financial advice, just encouragement.
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