A managed investment portfolio is a mystery to a lot of people. But, since retirement plans have been dropped by more and more companies and the future of social security looking grim at best, a backup plan is not a bad idea. Even if you are lucky enough to have a retirement plan currently, there’s no guarantee it will be there when you need it.

Not only are managed investment portfolios a good idea for retirement, they are a good way to plan for any big expense of the future such as buying a home or funding your children’s education. You might not think you have the money to tackle such a project, but you’d be surprised where extra money can come from and how little it takes to get started. If you have a credit card cashback rewards program, investing that amount on a regular basis is plenty to start building a comfortable nest egg.

The first thing to do is establish your goals. You can always increase or decrease the amount at any time. You also should determine how much risk you are willing to take. Typically, higher risk investments will give a higher return, but you may be more inclined to invest in stock that is a little more stable but gives lower returns.

Once you have established your own personal parameters, it is time to begin picking stocks. While it is easy to feel intimidated, you can mitigate this by choosing the stock of companies with which you are familiar. If you’re interested in stock with which you are not familiar, it’s time to do some research. It’s best to stick with more solid stock to establish your portfolio to begin and look at higher risk stock as time goes on

Keep in mind an investment portfolio is a long-term project and once you start, you’re better off keeping an eye on it while letting it do its thing. A credit card can be used for good deals as they come up, but remember to pay off your balance before interest fees accrue to keep expenses down. In this way, credit cards can really help you manage an investment portfolio, but only if it’s done the smart way.

At first, investing in stock can seem like a mystery and quite intimidating to the uninitiated. The key is to start small, build slowly and research before you buy or sell. In this tough economic climate, it’s the smart investor who looks to their own future in the face of cutbacks and uncertainty

 

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