"The fundamental building blocks are stocks and bonds," says AJ Flores, Lead Financial Advisor with Portfolio Advisors in northwest Fresno.
Flores says when building your portfolio, find a balance that you're comfortable with.
"We see stocks as being the driver for growth, but you carry a little bit more risk," he said. "Bonds are a little bit more stable, not risk-free, but allow you to have a little more control over volatility in your portfolio."
There are also mutual funds and ETF's to consider.
"You purchase a mutual fund so that you have exposure to all of these individual companies without having to buy each one individually," Flores said.
Flores says, similar to mutual funds, ETFs act as a basket of securities, including stocks, bonds and commodities.
"ETFs provide a little more flexibility," he said. "They are generally cheaper to purchase. Typically, they don't come with transaction costs."
With various digital platforms offering real-time data, the stock market is at our fingertips, but Flores says that if you're building a long-term portfolio, keeping hourly or daily tabs on your stocks could be more harmful than helpful, especially amid market volatility.
"I think if you can avoid the emotional decision-making that comes with keeping an eye on it, then you can look at it a little more frequently," he said.
Before diving into the market, Flores says it's important to set your financial goals and assess how much you're comfortable risking.
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