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Chapter 1 — INVESTMENT GOALS: HOW TO MANAGE THEM 
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INVESTMENT GOALS: HOW TO MANAGE THEM 

INVESTMENT GOALS: HOW TO MANAGE THEM 


Tap below to watch a short video about investment goals and read for more details.

Learn about different types of investment goals and how to set them to your benefit


Setting Investment goals is the first step to achieving more financial freedom. Here are some common examples of investment goals:

  1. Start saving for retirement
  2. Earn extra money on the side
  3. Buy something expensive in the future (i.e. a home or car)  
  4. Conserve the value of money (deter the effects of inflation)
  5. Help pay for education
  6. For the thrill of it

Manage your investment goals

Investment Goals, whether they be short or long-term, investment-related or health-related, are essential for achieving any measure of success. So where to start? Well, how you set and manage your investment goals depends on what you are trying to accomplish.

SO, WHAT DO YOU WANT TO ACHIEVE? 

If you know that you want to have enough money to last you through retirement, then that is the first place to start so you can put a specific plan in place. If you want to make enough money in the stock market so you can take a vacation this summer, then those are different goals than the ones you would set for retirement.

You see, managing your investment goals also means choosing the targets that are right for you. Your purposes should be consistent with your skill level and your experience. If you aren't sure about how ambitious or difficult your plan is, ask a fellow Sprinkler for a second opinion.


"The individual investor should act consistently as an investor and not as a speculator." - Ben Graham


SET CLEAR INVESTMENT GOALS

Once you decide what you want to accomplish, you can then begin to set some clear, measurable plan. Investment goals often cover some tangible measure of performance.

What this means is that a well-thought-out goal will also include some statistics or numbers (often called "financials") that you can record down in a word processing document. In that document, you can write down where the investment numbers are today so that next week or next year, you can track how close you are to your goal by using a concrete measurement.

Remember, these plans should be based on what is reasonable over a specific period of time. For example, if you are a beginning investor, a target might be to make more money than what you would get by leaving your money in the bank. If you're more experienced it could be to beat the S&P500.

Investment Goals: Example

Here is an example of Alexander Wallin's portfolio, where his investment goal was to beat the S&P500

Whatever investment goals you choose, the most important way to manage your purposes is to follow your investments and check periodically to make sure they fit with your plans.

Quiz

Select the response below that is NOT a part of managing your investment goals?

Correct
Incorrect
0/76 (0%) Correct
  • 1
    Make an investment choice and see what happens.
  • 2
    Make a plan to reach your goal.
  • 3
    Review how your investments compare with your plan and your goal.
  • 4
    Finding a goal that matches your investment skill level.
Submit Answer
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Alex's thoughts: 
I started investing when I was 14 and my investment goal was to pay for my education. I'm proud to say that both my investments and my goal gave a great return.

What are YOUR goals? 
Feel free to share them in the comment section below.

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