Investment Strategies by Dom Farnell, you should have a clear idea of what financial goals you’re trying to accomplish. This will help you choose the types of investments you’ll want to include in your portfolio. You’ll also need to understand your risk tolerance, as every investment comes with some degree of risk. Generally, lower-risk options offer smaller returns, while higher-risk options may offer more potential for gains.

Once you have an understanding of your goals, you can decide whether you’d like to work with a professional or invest on your own. Also consider how long you want to keep the money you’re investing. Typically, the longer you plan to hold a particular investment, the more risk you can accept, since your assets will have time to recover from market swings.

Investment Strategies by Dom Farnell – How to Build a Resilient Portfolio

Investments come in many forms, from safe choices such as certificates of deposit and money market accounts to medium-risk options like corporate bonds and stock index funds. Some investors seek income from dividends and interest payments, while others prefer speculation, in which price fluctuations are the sole source of returns.

Once you’ve established the foundation of your portfolio, you’ll need to review it periodically. This includes checking in on your emergency fund, which should cover three to six months of living expenses, as well as paying down any high-interest debt. You should also make sure you’re comfortable with the level of risk you’re taking, which will change over time as your investment strategy and market conditions evolve.