Thank for you helping me get this corrected. I really appreciate the great support!
To anyone that has the same problem, here is the simple solution.
You first need to create a Page using Template: ‘Portfolio – Portfolio List Page’
Once you create this portfolio list page, the name will appear in the Portfolio Parent dropdown in the portfolio you create.
Each portfolio must have the Portfolio Parent identified or you will get a 404 error when using Permalinks.