2013 is right around the corner, so it’s time to start evaluating your success for 2012 and setting investment goals for next year.
You may have short-term goals you hope to achieve within a few years and long-term goals for the distant future. For example, you may be saving for the down payment on a home or perhaps you want to provide university education for your child or children. Maybe your goals are even longer term and you’re building a nest egg for retirement or planning to get married. Whether you are kick starting your investment or already a seasoned investor, setting goals is the foundation upon which long term wealth is built.
In order to reach your goals, you need to determine their practicality and outline each goal’s investment time horizon. Time is important because the longer you have to achieve a goal, the more aggressive you can be in your investment choices. Conversely, when you have less time to achieve a goal, you are more likely to consider lower risk investments.