Building a new investment portfolio

The investing world is often composed of two different strategies, short-term investing and long-term investing. Many people are torn between what type of investment strategy they should use when they are taking part of their income to put toward their retirement. The one thing you do need concern yourself with is the fact that you need to start saving when you are young. Your retirement is the one thing that needs a long time to grow in order to have enough to love off for the rest of your life. To help you with your investment portfolio, we have come up with a few simple tips and tools you need to utilize:

Tip # 1 - Invest in mutual funds
For young investors that do not know much about the investing world, mutual funds are one of the best options out there. If there are several stocks that you have always wanted to invest in, now is your chance to actually invest in them along with a handful of other people that share your mutual fund account. Pooling your money together with other investors is one of the best ways to invest in large accounts. Mutual funds generally bounce back fast after the stock market goes through its ups and downs. If you don't want to deal with your investments, mutual funds are definitely the way to go as a good mutual fund can take care of everything for you and make sure your investments are safe.

Tip # 2 - Invest in insurance
When you are young, you are reckless compared to middle-age and early retirement. Since you never know what type of risky situations you will put yourself in, it is always wise to have insurance to protect your loved ones. Always invest in life insurance that will meet any future needs for your family along with funeral expenses. Life insurance policies are actually quite cheap compared to other investments and it's one of the easiest ways to make sure your loved ones will be taken care of in case you have an untimely departure.

Tip # 3 - Safe investing
No one really knows what is going to happen to the stock market and it is important to pick some safe investment options. Don't put all of your eggs in one basket unless you are absolutely sure of the investment. Instead, place some smaller amounts into low-risk things like government bonds, precious metals, savings accounts, and CDs. While you may not gain a lot of money from these investments, they will diversify your portfolio and provide you with a back-up plan when your stocks fall through.

Tip # 4 - Equities
A great addition to your investment portfolio is equities. You need to invest in equities as they will provide you with great interest that is spread out among shareholders. Generally equities provide interest rates over a duration of 3-5 years. It's one of the best ways to gain a significant return for a short or long period of time.

Tip # 5 - Good advice
The best way to build a good investment portfolio is to make sure you are receiving good advice. There are several investment managers out there that only want to make a profit and they don't always help their clients secure a good financial future. Be weary of the mutual fund manager that is investing money into their properties. Some may offer advice on investing in real estate, which can make you a great deal of money but it can quickly turn on you and cost you a great deal of money as well. Be careful with real estate investing and make sure you time the market right so you don't end up losing everything.