InvestNow News – 20th Dec 19 – Fisher Funds – Interest Rates Part 3: Purposeful Placement of Your Nest Eggs
18 December, 2019 – David McLeish – Senior Portfolio Manager — Fixed Interest
The right investment strategy will depend on a range of factors – many personal to you and your financial objectives. There are, however, some principles that can help guide you in making this important decision. We explore these below.
Consider what you want to achieve and when
Setting a goal is the first step in building any successful plan. Investing is no different, you can’t expect to decide the right investment strategy without first knowing what you’re trying to achieve.
Your financial goal can be anything. But the most common one we hear from our clients is to maximize the size of their nest egg at retirement. Other popular, shorter term, goals include saving for a first home or a special occasion.
People who write down their goal are 42% more likely to achieve them*
Once you have your goal, write it down. Studies show you are far more likely to achieve it that way. This is particularly important in investing, because a written goal can be a great reference point for when markets get tough and you invariably begin to question your investment strategy.
Our investment team practice this very same discipline. The goal behind every investment we make on your behalf forms part of our investment thesis, which is written down in painstaking detail.
A goal without a plan is just a dream
Your investment strategy is personal to you. Because of this, it will need to evolve as your personal circumstances change. But to get you started, our Investor Profile Questionnaire can help with finding the right strategy for your current situation.
There are two key factors which determine your ideal strategy; your investment time horizon and your ability to tolerate undesirable outcomes.
Step 1: Set your investment timeframe
The timeframe you have for achieving your goal will make certain assets more appropriate