7 Investing Objectives – Pick A Combo

Many people when they think of investing only view the end game… and that is to have money. An investing purpose will make the process, steps and focus much more defined and help “push” you towards the final goal. I know it has made the process of regular investing much easier in our family.

To determine your own particular needs, look at the list of questions below. They will help you focus on your own objectives.

• Do you want complete safety of your dollars, so that you can be sure of getting them back, or are you willing to take some risk? Remember NO risk = Low return
• Can you spare the money for a period of years, or do you want it readily available because you might need it at any time?
• Do you want the income from the investment to start now, or are you willing to settle for the possibility of a larger profit in the future?
• Is it to be a reserve against financial trouble or loss of job? (Emergency Fund)
• Is it for protection against inflation and loss of purchasing power?
• Is it eventually to provide income when retirement comes?
• Is it for future use in purchasing a home or business, or for some other undertaking?

Most families have several of those objectives. Therefore, in general, they should have several types of investment. And by combining one type of investment with another, a family should be able to achieve any reasonable financial goal.