Your Guide to Successful Financial Portfolio Management

Your Guide to Successful Financial Portfolio Management
10 Feb 2020

Some day, you may want to retire, buy a home, or follow a dream.

Having enough income to prepare for your future requires planning and planning early as possible.

Financial portfolio management is a valuable tool in helping you reach your goals. 

You can manage your portfolio or seek guidance from a professional financial advisor. Following are some tips to help you begin.

Financial Portfolio Management

Portfolio management is a means for developing an investment and savings strategy

The key to a well-managed portfolio is ensuring diverse investments. These include stocks, bonds, and other securities. Diversity reduces your risk.

A diverse portfolio should include conservative (bonds) and riskier (stocks) investments.

Tracking your portfolio is crucial due to ongoing changes in the financial market.

You decide on how to structure your portfolio based on:


How much risk are you willing to take? Are you willing to risk potential losses?


How long before you need the income from your portfolio? Are you retiring in 40 years or 10?


Are you saving for retirement, home ownership, college, or something else? How much will you need?

Starting your Financial Portfolio

The earlier you begin investing in your future, the more likely you are to reach your goals.

Spend time learning about types of investments and strategies. Financial knowledge is key to building and tracking your portfolio.

How do you Learn about Investing

  • Forbes recommends creating a virtual portfolio for practice. 

  • There are numerous business-related books you can reference.

  • Magazines such as the Wall Street Journal provide current knowledge.

  • Many web sites are available as well. Make certain the information is up-to-date and accurate.

  • Don’t forget to study tax implications. They can change as often as the financial market.

How do you Start Investing

If your employer offers a 401(k), you can contribute up to the amount permitted.

If not, open an IRA and deposit funds from your income on a regular basis.

In either case you identify how to invest your money.

A good stock portfolio includes a variety of stocks that can vary in performance.  Track the performance of your stocks. Adjust to improve returns as the market changes.

Brokerage firms are another option. You can buy stocks or mutual funds through brokers. These firms charge yearly and transactional fees.

For simple, inexpensive advice look to robo-investors. Robo-investors are programs that manage portfolios based on algorithms determined by your goals.

Financial Advisors

Financial portfolio management is a major investment in time and effort. A well-balanced portfolio contains stocks, bonds, and real assets such as commodities. 

The ratio of your investment types can change. You can re-allocate investment types as needed.  

Financial advisors can help if you don’t want to go it alone. They can provide guidance and strategies

An advisor helps plan for long and short-term goals based on your financial picture.

Once you are ready to begin investing you have options. You can do-it-yourself or seek professional guidance.

Starting your financial portfolio is an important step towards protecting your future goals.


Daryl Seaton