Building an investment portfolio

A portfolio is everything you invest, viewed as one whole. Thinking in portfolios rather than single picks is the main way to manage risk while still earning more. IncomeGrid helps you discover higher-yield income opportunities you may not have looked at, so you can earn more on the same money. It has 40,000+ investment options screened, each with its yield, after-tax yield and a risk level from 1 to 5.

Building blocks

Block	Role
Cash and Treasury bills	Safety, spending money, emergencies
Bonds (Treasury, agency, muni, company)	Income and stability
Stocks	Long-run growth, some dividends
Real estate (REITs)	Income, some inflation link
Alternatives and filed offerings	Extra income, higher risk, often less liquid

Asset allocation

The mix between these blocks drives most of a portfolio's risk and return. A common approach is to hold what you'll need in the next few years in lower-risk income assets and the rest for growth. See asset allocation and risk vs return.

Diversification

Spreading money across many issuers, sectors and types means one default or cut hurts less. Investor.gov describes this as a basic way to reduce risk.

Rebalancing and tax placement

Rebalance when the mix drifts far from your target.
Hold tax-inefficient income (taxable bonds, REITs) in tax-advantaged accounts where possible.
Hold munis and Treasuries in taxable accounts, where their exemptions count.
Compare after federal, state and each investment type tax.

Start from an example

IncomeGrid's example portfolios show income portfolios that spread risk across many issuers; you can edit them, add items and save.

Income portfolio example structure

An income-focused portfolio might group holdings into a short-term layer (Treasury bills, money-market funds) for spending and emergencies, a core layer of Treasuries and high-grade bonds for steady interest, and a smaller layer of higher-yield assets such as REITs, high-yield bonds or filed offerings for extra income. The share in each layer depends on how much risk you accept. This is a structure, not a recommendation; IncomeGrid's examples follow published rules you can read on the method page.

How IncomeGrid helps you earn more

IncomeGrid helps you discover higher-yield income opportunities you may not have looked at, so you can earn more on the same money. It has 40,000+ investment options screened, each with its yield, after-tax yield and a risk level from 1 to 5. Choose where you live and every yield is shown after federal, state and each investment type tax, so you can see which options pay you more.

Open example portfolios → or browse example income portfolios

Frequently asked questions

What should be in an investment portfolio?

A mix of cash, bonds, stocks and possibly real estate, in proportions that fit your timeline and risk.

How many investments should a portfolio have?

Enough that no single one can do serious damage; funds make broad diversification easy.

How often should I rebalance?

Many people check yearly or when the mix drifts meaningfully from target.

Not investment advice. General information only; yields change, check the source before acting.