What is investment planning?
Investment planning is the process of determining how and when to buy, sell, and manage investments in order to meet your financial goals. A comprehensive financial plan should include investing plans that take into account your current financial situation and risk tolerance, in order to achieve your long term goals.
Investment planning involves more than just selecting stocks and hoping for the best. You need to consider your current financial situation and your goals for the future. It’s also important to define your timeline, level of risk you’re willing to take on and how much money you have available to make sure you select the right asset allocation for your needs.
So what are the benefits of creating a solid investment plan as part of your ongoing financial planning journey?
First of all, it’s important for family security. If anything happens to the working member of your family, you want to know that the others will be financially secure.
Investment planning also helps you manage your income efficiently. Managing income helps you manage other expenditures—tax payments, for example—more effectively than if you didn’t have an investment plan in place.
In fact, one of the benefits of having an investment plan is that it helps you understand your current financial situation better than ever before. This makes it easy to evaluate different investment vehicles or retirement plans based on what works best for your particular situation.
Finally, investing in liquid investments will help ensure that funds are accessible when they’re needed most: emergencies!
Finding your ‘why’
Investing is a commitment, so it’s important to know why you want to invest. Does it provide an additional source of income for your family, or set up your family for retirement? Maybe you just want to create a better future for yourself, your spouse and/or your children. Investing time and energy into something that doesn’t provide value to you personally can be frustrating and difficult. The best motivator: knowing why you are investing in the first place.
Engage with an expert
Making an investment plan is a serious endeavour and should be handled by experts. A certified financial planner from PTP will walk you through the entire process of investing, from defining your goals to selecting the best stocks for your portfolio. We offer comprehensive investment strategies and strive to align your investments with your specific goals.
