The next chapter in the investment fund series is “Know your investment goals”.  I’ll take you through an easy and repeatable process to help clarify how to choose the right investment goal(s).

Two people thinking

It is difficult to become a successful investor if you don’t know your investment goals, thus we ask our-self.  Why do I invest?

All our situations are unique, as no one investment goal is right for everyone.  If your goal is to purchase a home and your neighbor’s is to prepare for retirement, the specific investments will likely differ.  Thus the first step to knowing your investment goal(s) is posing the question to yourself, why am I investing?  Is it to: retire early, pay for a child’s college tuition or start your own business?  Whatever the reason the importance remains the same.

So while you sit down to eat breakfast, ask yourself, why am I investing?  Your answer will lay the foundation for next week’s newsletter, “What is my time horizon?”.

Knowing your investment goal(s)

  1. Why am I investing
  2. What is my time horizon (next newsletter)
  3. What is my risk tolerance
  4. What is my liquidity requirements
  5. Choosing my investment goal
    1. Growth
    2. Conservative Growth
    3. Income
    4. Preservation of Capital