by Adam Netland

When the unprepared investor is asked about investment goals, the answer may be something like, “I want to make a lot of money.” The unprepared, in fear of missing the next hot tip, might purchase an investment now, and ask questions later. Investing with this approach may not be in your best interests long term. Taking a more disciplined approach with clear, defined guidance can be beneficial. A disciplined investment strategy can also aid in avoiding investments that are too risky or even too conservative.

Here are some important topics to consider when laying the foundation for a successful investment strategy.

Timeframe

Time horizon for your investments is an important consideration. How long will it be until you need this money for other purposes? 6 months? 5 years? 20 years?

The Big Picture

How does a potential investment work together with your other investments, savings, income needs, and overall life goals?

Risk Tolerance

How will you react to price fluctuations in your investments?

Level of Expertise

How knowledgeable are you about investments and financial markets? Would it be in your best interest to work with a Financial Advisor?

These questions can sometimes have complex answers, and over the years your answers to these questions will change as life’s circumstances change. This is a reason why an Investment Advisor might be helpful; to ask the tough questions, listen, and work with you to develop a disciplined investment strategy to help you achieve your life goals.