Setting Investment Goals

Investing without goals is like driving without a destination. Clear financial goals shape every investment decision you make.

Why Goals Matter

• Goals determine your investment strategy
• Without goals, you'll invest randomly
• Clear goals keep you motivated
• Goals help measure progress

Short-Term Goals (Under 5 Years)

• Emergency fund: 3-6 months expenses
• Vacation or major purchase
• Down payment for a house
• Keep in safe investments

Medium-Term Goals (5-15 Years)

• Children's education fund
• Starting a business
• Major home renovations
• Use balanced stock/bond mix

Long-Term Goals (15+ Years)

• Retirement
• Can invest aggressively in stocks
• Time reduces stock market risk
• Let compound interest work

Making Goals SMART

• Specific: Exactly what you're saving for
• Measurable: A specific dollar amount
• Achievable: Realistic given income
• Relevant: Meaningful to your life
• Time-bound: A target date

Reviewing and Adjusting

Review goals annually and adjust for life changes.