I'm 26. How Do I Invest for Income and Growth?

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What investment advice can you give a young (26-year-old) professional who is looking to invest in something that will give both income and growth? Stocks and/or bonds? -- C.

A combination of income and growth can be a worthwhile investment strategy . But investing in your mid-twenties offers some unique challenges. Young professionals often lack the time or experience to thoroughly research and pick the "right" assets . However, being in your twenties also offers you a lot of benefits that can make you money now and ensure that you're set to invest in the future. So let's take a look at twentysomething investing.

Surmountable Challenges

Yes, there are obstacles that can mar the road to building a strong portfolio in your mid-twenties. While money might not be as tight now that you're a member of the workforce, it can be hard to prioritize and set aside that hard-earned cash to buy stocks or bonds , when a new car might look tempting (the current U.S. saving rate is disconcerting evidence of that). Time is also probably a fairly limited resource at this point in your life. Most 20-somethings aren't yet market mavens, so buying and selling like a "pro," can be pretty intimidating. Don't fear: While time and money might be in short supply, it honestly doesn't take a whole lot of either to get a solid footing for your portfolio . The following are five things that you should keep in mind when you're building your portfolio.

1. Asset Allocation Rules

The way you choose to allocate your assets can have a significant impact on your portfolio's gains , and since asset allocation is largely age dependent, it's important to make it a conscious part of your investment decision-making process (see "Allocate Your Assets Like a Pro").

If you're in your twenties, think stocks. Stocks offer young investors more of an upside than other investments (like bonds and CDs ) and they're frankly more exciting. According to RealMoney's David Peltier, "In your 20s, there's little need to focus on bonds. Even if you suffer some losses in stocks, you still have a few decades before retirement to make up for it."