Investment Goals (2024)

FAQs

Investment Goals? ›

Once you've answered those questions, you can begin to weigh the three primary investment goals--growth, income, and stability or protection of principal--to determine how to select specific investments that are appropriate for your financial plan.

Once you've answered those questions, you can begin to weigh the three primary investment goals--growth, income, and stability or protection of principal--to determine how to select specific investments that are appropriate for your financial plan.

Investment goals provide structure and purpose to the money we allocate to investment products, such as stocks, bonds and funds. Investing and investment goal setting go hand in hand with sound personal finance practices, such as building an emergency fund and managing spending.

Retirement. Retirement should always be the first investing goal on your list.

Safety, income, and capital gains are the big three objectives of investing but there are others that should be kept in mind as well.

Amount: Aim to save at least 15% of pre-tax income each year toward retirement. Account: Take advantage of 401(k)s, 403(b)s, HSAs, and IRAs for tax-deferred or tax-free growth potential. Asset mix: Investors with a longer investment horizon should have a significant, broadly diversified exposure to stocks.

An investment objective is a statement of what investors want to achieve. It can be short-term, such as generating income, or long-term, such as capital appreciation. Breaking down an investment objective means analyzing it to develop a plan to achieve it.

What is your investment strategy? ›

Key Takeaways. An investment strategy is a plan designed to help individual investors achieve their financial and investment goals. Your investment strategy depends on your personal circ*mstances, including your age, capital, risk tolerance, and goals.

Warren Buffett once said, “The first rule of an investment is don't lose [money]. And the second rule of an investment is don't forget the first rule.

Short-term goals are generally thought of as goals that you are investing for less than three years. Perhaps you are looking to save for a vacation, a down payment on a car, home improvements, or to buy a new appliance.

In essence, setting investment goals will: Form the basis of your investment strategy. Help you decide which asset class to invest in. Determine your tolerance for risk. Help you know if you're on track.

UNDERSTANDING INVESTING OBJECTIVES:

There are three main objectives in successful investing: safety, income, and growth.

A three-fund portfolio is a portfolio which uses only basic asset classes — usually a domestic stock "total market" index fund, an international stock "total market" index fund and a bond "total market" index fund.

Investments can generally be broken down into three categories: ownership, lending, and cash equivalents. Ownership covers stakes in companies, setting up a business, real estate, and precious objects and collectibles.