10 Steps to Building a Complete Financial Portfolio

Great work! If you’ve followed the step-by-step for building a complete financial portfolio, you have contributed to your 401k, paid off your credit card debt, fully funded a Roth IRA, purchased a home, and established a six-month emergency fund. Now, it’s time to turn your eye to additional investment opportunities by opening a brokerage account.

Range of investments available

A brokerage account will allow you to invest in stocks, bonds, mutual funds, certificates of deposit, real estate (via REITs), treasuries, and more. Selecting a broker is largely a question of what you want: are you looking for a relationship with a single person whom you can call (i.e., a traditional broker), or do you want to place most of your trades online or with a broker you do not know (i.e., with a discount broker.) The primary benefit of the latter model is significantly lower trading costs. Many brokerage firms, such as Merrill Lynch, offer both models and allow the client to choose at the time they open their account. For help making the right decision, take a look at the article Before You Open a Brokerage Account.