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Build an investment process before choosing an investment product

Connect goals and time horizon to asset allocation, diversification, fees, taxes and the amount of risk you can actually maintain.

Guides in this section
7 guides in this section
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In brief

A durable plan usually starts with a goal, time horizon and emergency cushion, then uses diversified investments at a cost and risk level you understand. No allocation eliminates loss, and past returns do not forecast future results.

Tools and references

All investing guides

Common questions

What should a beginner decide before buying an investment?
Define the goal and time horizon, keep near-term needs out of volatile investments, understand the account's tax treatment, and compare diversification, fees, liquidity and potential loss.
Does diversification prevent investment losses?
No. Diversification spreads exposure across investments or asset classes and can reduce concentration risk, but diversified portfolios can still lose value.
Why do investment fees matter?
Fees reduce the money that remains invested and compounds. Compare expense ratios, advisory charges, transaction costs and account fees on the same dollar basis and over the same time period.