Personal Finance Guide

Do you have a financial plan? 

Are you buying investments because they fit in with your strategy? or 

Are you investing by reacting to recent events? 

A sound financial strategy can help keep you from being stampeded into making poor investment decisions. 

A Sound Investment Strategy

There are three main considerations you need to bear in mind when developing a sound investment strategy: 

• Investment objectives
• Time frame
• Risk Tolerance

Investment Objectives

There are four basic objectives associated with any investment: 

• Return of principal
• Income
• Growth
• Tax benefits

Time Frame

The time frame you have until you reach your investment goals can have a tremendous impact on the investment categories you choose. Changes in the financial environment and fluctuations in the financial markets can make a difference in your return. 

If, for example, your investment goal is investing for a down payment on a house next year, you generally wouldn’t want to invest all your money in aggressive investments that carry a lot of risk. You simply wouldn’t have time to recover from heavy losses.

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• Investment Strategies