Moneyhive Investments Services - Investment Planning

“An investor without investment objectives is like a traveller without a destination.”

Investing is the activity of employing money in buying assets so that it generates income and appreciation in value over time.

“Even if you have very little to invest now, it’s important to start investing as early as possible. The sooner you begin, the sooner you can build wealth by increasing your assets.”

In order to structure a plan that is right, it's important to understand where your finances stand and what you want to accomplish with your investments. Then define how to reach those goals and select the best investment options to reach them. It is never too late to create and implement a personal investment plan and begin creating a nest egg for the future.

Investment Planning Process

1) Assessing your current financial situation - Know how much disposable income you have available to invest. Take a look at your budget and determine how much money is left over for investments after your monthly expenses and after you have set aside an emergency fund equivalent to three to six months’ expenses.

2) Evaluating your risk profile - Your risk profile determines how much risk you're willing to take. Select your investments based on your risk profile.

3) Setting goals for your investments - Decide what do you want to do with the money you make from your investments. Do you want to retire early or buy a nice house or fund child’s education.

4) Determining timeline for your goals - How soon do you want to reach your financial goals will determine the type of investments you make.

5) Creating the investment plan – Decide on how to diversify your money into various asset classes so that they are aligned with your financial goals and risk profile.

6) Monitoring and rebalancing your investments from time to time - Check to see if they're performing according to your goals. If not, reevaluate your investments and determine where changes need to be made.