You are not going to have to look for investments aimlessly ever again

I read a lot of social media posts of people asking what kinds of investments are good for them. And in my practice, such questions cannot be answered on a whim. I use a three-part assessment framework to be able to come up with recommendations to my clients.

1. FINANCIAL GOAL - It should be clear what the financial goal is for such planned investment. Whether it be for children's education funding, a major purchase, initial capitalization for a new business venture, home renovation, overseas travel, wedding expenses, emergency funding, critical illness safety net or retirement funding, it has to be clear what the investment is for.
2. TIME HORIZON - How many months or years do you have within which to allow your investment to grow before you need it for your financial goals? This question needs an honest-to-goodness response because it impacts both value accumulation and the achievement of goals.
3. RISK APPETITE - Is the investor risk-averse, an aggressive one or someone in between? Investment portfolios are exposed to various levels of financial and non-financial risks and there is always one type that fits one's risk appetite.

There you go.

Let me note, however, that the assessment is not only done prior to making any investments. It should be done on a regular basis throughout the lifetime of such investment. It is important to re-think and re-assess the investment choice every time to keep it always tied up to the current and updated financial goal, time horizon and/or risk appetite.

Happy investing!

PS: I have helped many clients make more intelligent investment choices and I do regular re-assessment with them too to make sure they are on-track. Please take my one-minute financial wellness survey at https://bit.ly/1-MinuteFinancialWellnessSurvey if you feel you need any professional assistance in the area of investment assessment and review. Thank you and let's talk soon.