Investment Plannning


Creating a viable investment plan requires a little more than simply establishing a savings account and buying any random investment options. In order to structure a plan it’s important to understand where you’re at and what you want to accomplish with the investments. Then, you’ll define how to reach those goals and select the best investment options to reach them.


Invest according to your age : Your age will have a significant impact on your investment strategy.

  • Generally speaking, the younger person can take more risk because they have more time to recover from a market downturn or loss of value in a particular investment.

So, if you’re in your 30’s, you can allocate more of your portfolio to more aggressive investments (like growth-oriented and small-cap companies for example).

  • If you’re nearing retirement, allocate more of your portfolio to less aggressive investments, like fixed-income, and large-cap value companies.

Analayis your current financial situation.  Be aware of how much surplus income you have available to invest. Take a look at your budget in term of your monthly income, expenses and emergiences after that determine how much money is left over for investments following your monthly expenses and after you have set aside an emergency fund equivalent to three to 6 months’ worth of expenses.

Investigate your options. There are many different accounts you might use for an investment plan. Familiarize yourself with some of the basics and figure out what works for you.

  • Set up a short-term emergency savings account with three to six months worth of living expenses. It’s important to have this established to protect yourself if something unexpected happens (job loss, injury or illness, etc.). This money should easy to access in a hurry.

Monitor your investments from time to time.
 Check to see if they’re performing according to your goals. If not, reevaluate your investments and determine where changes need to be made.

Determine if you need to change your risk profile. Generally speaking, as you get older, you’ll want to take less risk. Be sure to adjust your investments accordingly.

  • If you have money in risky investments, it’s a good idea to sell them and move the money to more stable investments when you get older.
  • If your finances tolerate the volatility of your portfolio very well, you might want to take on even more risk so that you can reach your goals sooner.