When it comes to investing it is very important to set goals. It will increase your chances of success and it will also help you to put things in perspective. You need to set goals and develop a plan to reach those goals. It is very important to ask yourself what you are willing to achieve so that you can take the right steps towards achieving this.
You want to set yourself aside from the investment crows who simply want a good return on their investment. This is great but you also need to consider the when meaning the long run goals. Ask yourself how much do you need for your retirement or how much do you need for your children’s education. You need to also determine the timeframe in other words how much time do you have in your hands to achieve these goals.
For example let’s take a very typical example of the average investor. The investor is 40 years old 40 years old and has a good income. The investor can invest an average of $300 every month. Do you think this person will have a million to retire with? The answer is no. What this person will have at the age of 65 with a 10% return will be less than $400,000.
The key is to plan ahead and have realistic expectations. Also you need to calculate things based on worst case scenario. What is the minimum you can make as a return. That is what you should be aiming at and anything more is just a bonus. For the investor in our example in order to hit the million mark at 65 he will need to invest double the amount of money or find investments that pay two times the rate of return.
Setting a target is very important. It helps to put things into perspective. Financial planners will help you refine your goals but also you need to have an idea of what is going on before you move ahead and ask for a investment advisor advice.