ABSTRACT

Build wealth by investing more of your assets in growth-oriented investments. When you are just starting out, your investment time horizon is long and your primary investment goal should be accumulation of capital. You do not need to use your investments to enhance your current income. Under these circumstances, stock investments should be a large part of your portfolio. Your diversified portfolio might include fifty percent in common stock mutual funds with potential for long-term growth, and twenty percent in balanced mutual

funds invested in both stocks and bonds. If you need cash reserve, keep five percent in a money market or short-term (three to six) treasures.