Setting goals - Milford Asset

Setting goals

Investing can be a great way to generate wealth and secure your long-term financial future. But before you begin, it’s sensible to first decide what you’re setting out to achieve, how you’re going to achieve it, and by when.

To begin this process, a good first step is to set a goal. For instance, are you saving for your children’s education or perhaps you’re investing for retirement? Or maybe you want to simply grow your wealth. Whatever the reason, after deciding why you’re investing the next step is to determine how much money you need to achieve that goal and over what time frame. This will reveal what sort of average return you’ll need to achieve to reach that goal, and whether your goal is realistic. This information forms the basis of your investment strategy, but you should also consider:

  • The amount of time you have to achieve your goals
  • The sorts of assets you’re comfortable holding
  • Your overall appetite for loss versus return (how much capital you are prepared to risk)
  • The current value of your portfolio and what additional contributions may be required
  • Adopting an active management approach (constant monitoring and rebalancing)

Markets can be volatile, which can lead to uncertainty. In such circumstances, having a clearly defined investment strategy will help you make the decisions you need to stay on track.

If you are unsure you should talk to an Authorised Financial Adviser (‘AFA”).