Beginner's Portfolio Template

"First learn stand. Then learn fly. Nature's rule, Daniel-san. Not mine."
--Miyagi (The Karate Kid)

How to tie what we've discussed about investing so far into actionable outcomes? Here's a template of sorts for what a beginner's investment portfolio might look like:

Equities* 
stock 1
stock 2
stock 3
stock 4

Fixed Income 
CD

Cash and Money Market
money market fund
residual cash

*Shoot for four equity positions of the dividend paying, anchor stock variety

How much to allocate to each asset class? Because young investors have time on their side, they can afford asset allocations tilted toward more equity exposure. Aggressive designs might even ignore fixed income in favor of more stocks (particularly if those stocks generate income).

On the other hand, if your risk tolerance is lower or if you are less confident in the outlook for equities, then a more balanced or cash rich allocation with fewer equity positions makes more sense.

Keep this template in mind while assembling your own portfolio.