Thomas Batterman Explains How to Plan Your Investment Portfolio

Beginning an investing career is an exciting time filled with learning, researching, and getting to know the volatility in the market. Of course, given such a complex set of factors, it comes as no surprise that people often lose money in the initial stages of their buying. Fortunately, the ways to get around some of the most common mistakes are counted in the hundreds. That means that there are numerous alternatives that people can use to avoid losing their capital. Ultimately, however, each of these methods tends to boil down to proper investment planning that will help one build a lucrative portfolio. So, what would be the most common steps that an investor should take to make smart investments from the very beginning?

Figuring out the Preferred Risk

Before starting to build a portfolio of any kind, the investor must understand what their preferred level of risk is. The reason why this is important is that it will allow them to properly gauge how aggressive they should be with their transactions and what types of securities they should seek. And although this part of the process sounds simple, it is not.

First, one must look at some of the obvious factors such as disposable income levels, age, and financial goals. A combination of these will determine if the investor will seek to put down larger amounts of money or if they can ease into the venture. For instance, someone who is still in their younger years should aim to make riskier investments because they have more time to recoup the money that they lose. People who are in their retirement, however, should not take this route as any loss may be unrecoverable.

Learning About Securities

Once the investor knows what type of risk category they fall into, they need to start learning about the prospective securities. This means researching the stocks that they are interested in and figuring out where those assets may go in the future. In translations, looking for cues that are indicative of positive growth soon, so that the investor can realize gains. If, however, the stocks are looking shaky and there are not ways to diagnose what type of movement their prices will exhibit, it may be better to look elsewhere.

Of course, many investors also fill their portfolios with exchange-traded funds, long-term bonds, and many other types of assets that are not as basic as stocks. Doing this is important because it promotes the concept of diversification. For those unfamiliar, this means that the investor will have a fair amount of many different assets in their portfolio. So, a drop in value in one industry will not result in a portfolio-wide loss. According to the founder of Financial Fiduciaries, LLC, Thomas Batterman, the concept of diversification is just as important as knowing the risk level.

Getting Advice

Naturally, no amount of research and planning will ever top someone’s real-life experience. So, even though people should spend a plethora of time going through the numbers and figuring out the market for themselves, relying on input from others is just as crucial. This is where people can turn to individuals like Thomas Batterman in Wausau, Wisconsin and seek financial input about things that may not be so apparent to someone lacking experience. Fortunately, the supply of brokers, financial advisors, and other individuals who can help make profitable decisions are in no shortage. Thus, getting help should not be difficult. The only downside would be the cost as most of these services will require some out-of-pocket expenses that are not related to the actual investments.


Ultimately, it is important to plan for purchases. Although it seems self-explanatory, knowing where to go to acquire securities is the first step towards becoming an investor. Once again, however, the market has evolved to a point where there are hundreds of outlets where buying and selling assets is possible, and they range from online websites to phone apps.

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