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Building Your First Portfolio

A step-by-step guide to constructing a diversified investment portfolio.

StockLrn Team

7 min read

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Prefer watching? This video covers the key concepts from this article.

Portfolio Construction 101

Step 1: Define Your Goals

Time horizon and risk tolerance determine your asset allocation. Long-term goals allow for more equity exposure.

Step 2: Choose Your Allocation

A classic starting point is 60% stocks and 40% bonds. Adjust based on age and risk appetite.

Step 3: Diversify Within Asset Classes

Within stocks, spread across sectors and geographies. Consider both domestic and international exposure.

Step 4: Rebalance Regularly

Review your portfolio quarterly or annually. Sell winners and buy underperformers to maintain target allocation.

Choosing a Stock Brokerage: Account Types, Fees, and What to Compare

Before buying your first stock, you need a brokerage. Learn the difference between taxable, IRA, and Roth accounts, compare full-service vs discount vs robo-advisor platforms, and understand commission-free trading, execution quality, and how to switch later.

Mutual Funds Explained: Active vs Passive and When to Use Each

Mutual funds pool investor money into diversified portfolios. Learn the difference between active and passive funds and how to choose the right one.

Inflation and Investing: Protect Your Portfolio's Purchasing Power

Inflation silently erodes wealth. Learn how different asset classes respond to inflation and how to build a portfolio that stays ahead of rising prices.