Step #1: Begin a saving plan. This is key to all that follows. Remember "The Golden Rule of Investing." Save as much as you can as early as you can.
Step #2: Select the asset classes you wish to use to construct the portfolio. The table below suggests using either the "Big Six" or "Big Nine" U. S. equity classes plus Cash, Bonds, International (developed), Emerging Markets, REITs, and Commodities. For portfolios over $25,000, consider using at least 12 asset classes. [Read more…]