[00:00.49]There is no shortage of tipsters around offering 'get-rich-quick' opportunities.
[00:06.05]But if you are a serious private investor, leave the Las Vegas mentality to those with money to fritter.
[00:13.75]The serious investor needs a proper 'portfolio' -- a well-planned selection of investments, with a definite structure and a clear aim.
[00:23.61]But exactly how does a newcomer to the stock market go about achieving that?
[00:29.23]Well, if you go to five reputable stock brokers and ask them what you should do with your money,
[00:36.47]you're likely to get five different answers,
[00:39.80]even if you give all the relevant information about your age age, family, finances and what you want from your investments.
[00:48.30]Moral? There is no one 'right' way to structure a portfolio.
[00:53.28]However, there are undoubtedly some wrong ways,
[00:57.18]and you can be sure that none of our five advisers would have suggested sinking all (or perhaps any) of your money into Periwigs.
[01:07.29]So what should you do? We'll assume that you have sorted out the basics -- like mortgages, pensions, insurance and access to sufficient cash reserves.
[01:19.12]You should then establish your own individual aims. These are partly a matter of personal circumstances, partly a matter of psychology.
[01:29.16]For instance, if you are older you have less time to recover from any major losses,
[01:35.43]and you may well wish to boost your pension income.
[01:39.12]So preserving your capital and generating extra income are your main priorities.
[01:45.82]In this case, you'd probably construct a portfolio with some shares (but not high risk ones),
[01:53.02]along with gilts, cash deposits, and perhaps convertibles or the income shares of split capital investment trusts.
[02:01.95]If you are younger, and in a solid financial position,
[02:06.06]you may decide to take an aggressive approach
[02:09.29]but only if you're blessed with a sanguine disposition and won't suffer sleepless nights over share prices.
[02:16.89]If portfolio, alongside your more pedestrian in vestments.
[02:27.42]Once you have decided on your investment aims, you can then decide where to put your money.
[02:33.73]The golden rule here is spread your risk
[02:37.35]if you put all of your money into Periwigs International, you're setting yourself up as a hostage to fortune.
