Investment Planning is the art of protecting one’s money for the long term. There are many ways to do this, but the most popular is the use of mutual funds. A systematic investment strategy is an investment vehicle available by a number of top-name mutual funds to individual investors, enabling them to invest little amounts periodically rather than all at once. The frequency of investment varies by individual: some like to do their investing once a year; others feel more comfortable doing it several times a year. The benefit of a regular investment scheme is that the investor knows exactly what they are going to make each month and every year; not having to make that decision can be very disconcerting to the novice investor.
Investment Planning also involves the determination of short and long term goals. A common mistake for the novice investor is not setting and accomplishing short-term goals. Setting financial goals is a very important step in investment planning. These goals should be both realistic and achievable. Setting financial objectives that are too lofty can result in the investor giving up too soon; setting objectives that are too low will probably result in the investor giving up too early as well.
Once the financial objectives have been established, it is time to put together a solid investment planning plan. Planning should include the selection of which funds are to be invested in, the length of time it takes to achieve those funds’ goals, and how much of the investment cash should be used to pay off the initial loan and carry interest payments. Also, as part of the investment planning process, it is important to set aside as a cushion of capital for any eventuality. Finally, it is wise to consult with a financial advisor or other experienced professional before proceeding with any investment plan. This consultation can help determine if there are any other factors that should be considered before proceeding.