When we chat about investment you would have come across the word portfolio. But what exactly is a portfolio in layman's English? A portfolio is basically all the stocks you have purchased for a particular purpose. Investors buy stocks for many different reasons like,
Retirement purpose:
If you are making plans to retire from work in 10 years from now, The question you need to asked yourself is what exactly will be source of your earnings? Would you like to live on central authority welfare or would you like to invest your money in low priced share which in 10 years from now will be a blue chip company or do you want to live on dividend you get from your portfolio for example.
For the purpose of a will
A will doesn't imply you're going to die now however it shows you your asset and what you've been investing your money in. It is good to have a will because you are actually planning for your family and each member of your folks will know the stocks they are going to inherit from you.
For vacation purpose
Another reason for organizing a portfolio is for having vacation in different holiday spot on the planet. If you're planning to go to Hawaii with your family in December for Christmas, you need to start planning for it by January on the sorts of stocks to buy which may give you maximum returns from your investment.
For the purpose of getting an automobile
I know a dad who started purchasing a selected penny stock for his 13 years of age son. The daddy knew the child will need an auto at age 18. So he started investing his money in stocks and on the day of his boy 18 years old birthday, he gave him a fresh automobile. This was possible as he had a goal and acted on his plan.
Retirement purpose:
If you are making plans to retire from work in 10 years from now, The question you need to asked yourself is what exactly will be source of your earnings? Would you like to live on central authority welfare or would you like to invest your money in low priced share which in 10 years from now will be a blue chip company or do you want to live on dividend you get from your portfolio for example.
For the purpose of a will
A will doesn't imply you're going to die now however it shows you your asset and what you've been investing your money in. It is good to have a will because you are actually planning for your family and each member of your folks will know the stocks they are going to inherit from you.
For vacation purpose
Another reason for organizing a portfolio is for having vacation in different holiday spot on the planet. If you're planning to go to Hawaii with your family in December for Christmas, you need to start planning for it by January on the sorts of stocks to buy which may give you maximum returns from your investment.
For the purpose of getting an automobile
I know a dad who started purchasing a selected penny stock for his 13 years of age son. The daddy knew the child will need an auto at age 18. So he started investing his money in stocks and on the day of his boy 18 years old birthday, he gave him a fresh automobile. This was possible as he had a goal and acted on his plan.
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