How much money a person has is definitely one of the ways that you can determine how successful they are at a what point they are at in their life. You usually start managing your own money when you go off to school and you're studying or working. Then you have the task of paying off those student loans before you can start looking to buy your own home. It takes most people at least ten years after graduation before they can really start thinking about saving their money for their retirement and starting an investment portfolio. But this is something that every financial planner will tell you is important and is something that you should think about as soon as possible.

One of the easiest ways that a person can start building up their investment portfolio is with a 401(k) that is associated with the business that they are working for. If you're working for a firm or for a school and there are lots of employees then you will likely find that they provide you with this option. A 401(k) is not an investment in itself but is a place where you can manage all of your stocks. bonds, mutual funds, or any cash that you're saving up. This is a place where your investments will not be taxed the way that they would if they were being managed in a different way. You will only pay taxes on these investments if you make a withdrawal from the account, which will hopefully not happen until you're ready to retire to senior community or a cottage in the country.

Make sure that you understand the difference between putting money away for savings and money towards investments. While your financial planner is hopefully going to lead you towards investments that will grow over time, there are no guarantees to what will happen to the funds that you put into stocks or mutual funds. They say when you gamble that you should never play any money that you can't afford to lose. This is sort of the case with investments like these as well. You should always have a savings account as a safety net in case something happens with your investment money.

Don't put all of your money into one investment. The uncertainty of investing means that you should diversify as much as possible. The experts will tell you that this is the best way to ensure that you will not lose everything. If you'd like to buy a condo, get some artwork that is worth something and put some money into mutual funds then you will likely find twenty years down the road that you have a more solid investment portfolio then if you were to put all of your eggs into one basket. Talk to a financial planner if you don't know whether to put money into managed funds or into some specific stocks.

Look here for an investment portfolio sample.

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