Investing With Purpose
Investing begins with understanding what you want your money to accomplish.
Growth matters, but so do time, risk, taxes, liquidity, and the reason you are investing in the first place.
The right strategy begins by connecting your investments to your goals.
What Should Your Investment Strategy Consider?
Purpose
What do I need this money to accomplish?
Time
When might I need this money, and how should that affect the way it is invested?
Taxes
How much of my investment return could be affected by taxes?
Access
Will I have access to my money when I need it?
Risk
How much risk am I taking, and how much risk do I actually need to reach my goals?
Questions to Consider
Am I properly diversified?
Do different goals require different investment strategies?
What happens to my plan when markets decline?
How do I know whether my investments are actually doing what I need them to do?
Performance Is Only Part of the Picture
A strong investment strategy involves more than return alone.
It should reflect what the money is intended to accomplish, when it may be needed, the risk involved, the impact of taxes, and how those priorities change over time.