Establish Investment Goals
Goals! I love GOALS!! My goals spur me to save and invest. Today, I’m sharing about how my personal investment goals guide my mutual fund choices. First you should know a couple of things about me.
- I view my investments as money that I will not touch for at least five years.
- I prefer mutual funds over individual company stocks. I do own several individual company stocks, but I will not allow an individual company stock to exceed 10% of my overall portfolio. (See my current investment portfolio HERE)
My investment goals are GROWTH, GROWTH, and more GROWTH. I do not need my investments to produce income for me as I am in my early 40s. I want my money to GROW. This means that I invest in mutual funds that are purchasing stock of companies that are experiencing major growth (like Google).
Now, if I were retired, I would want my investments to produce income so I would be searching for mutual funds that invest in companies that are paying dividends to its shareholders (like Wal-Mart, Microsoft).
If I were approaching retirement, I would be moving the money that I would need in the next five years to much more stable and secure investments.
What are your investment goals?