Define your investment goals

Define your investment goals

Your objectives may be many and varied. Perhaps you’d like to:

  • save for a trip you’d like to take 2 years from now
  • save for your children’s education
  • get ready to retire 10 to 15 years from now
  • …be rich one day? (see: Golden rules to become rich)

Whatever your project, no single investment strategy applies to all investors. A lot also depends on which life stage you are in. For example:

Case 1 – Mary Lou

Mary Lou is 32 and has a steady income. She’s interested in saving for retirement. Her goal is to retire at age 60.

One investment strategy

Since Mary Lou is young and has a long investment horizon, she can afford to take a few more risks as she invests for long-term growth. She’ll have a longer time to recover from ups and downs in the value of her investments.

Cas 2 – Mark

Mark is 58 and plans to retire in 4 years. He hopes his investments will provide him with a regular and steady source of income throughout his retirement years.

One investment strategy

Mark should focus on capital-guaranteed investments.

When should I review my investment strategy?

Review your investment strategy at least once a year. If, in the meantime, however, your circumstances change drastically, such as if you come into some unexpected money, go through a separation or divorce, or learn you’re expecting a child, to name only a few, you should also carefully review your investment strategy.

See : What to do if you come into some unexpected money

Did you know?

When it comes to investing, time is money. It’s important to start investing young, even if retirement seems light years away. Even $10 a week will turn into a considerable amount if you start saving it when you’re 18 or 20. The longer the money stays in a tax sheltered investment, the greater capital you’ll have at retirement. Never forget that time is your ally.

Would you like to see just how much saving $10 a week can bring you 10, 20 and 30 years from now? See When it comes to saving, time is money.

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