The most common piece of advice in preparing for retirement is to start saving early. But investments can be a great way to maximize these savings. Here are some key points to consider in beginning or diversifying an investment portfolio:

• Set goals and milestones so you know where you’re headed. What goals do you want to achieve? How will you measure your success?
• Build on your strengths. If you’ve followed the market for years, you may be adept at actively managing investments. If not, passive index funds make excellent options.
• Diversify your portfolio. Don’t put all your eggs in one basket. Markets are inherently volitile, so be sure to spread your wealth throughout a number of stocks/portfolios.
• Rebalance regularly. Its a good strategy to buy when markets are down. Take advantage of panic sellers’ actions and increase your own wealth as markets turn around.
• Study the opportunities.  The longer you study and read-up on the markets, the higher your investing IQ will be. Be sure to accumulate knowledge and consult experts before investing hard-earned cash.
• Note your tolerance for risk. This is especially true as you get older and the need for liquidity may grow.
• Assume your expenses will vary. Consider time spent traveling, as well as inflation and health care costs.
• Recognize trends. The days of 8-10% returns rates have gone and aren’t likely to reappear in the next few years.
• Understand the numbers. If a market drops by 20%, your existing portfolio needs to grow by 25% just to break even.

What are some tips you use to manage your portfolio? What advice would you give to other community members? Share below!