Investment planning

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Investment Planning and Advice

5 Steps To Make An Investment Plan

What Is The Purpose Of Your Investments? An Investment Plan Needs A Main Purpose

When Will You Need To Use The Money? An Investment Plan Needs A Time Frame

Do You Understand Investment Risk? An Investment Plan Needs To Account For The Level Of Risk You Are Comfortable Taking

How Much Money Do You Have To Invest? Your Investment Plan Needs To Specify How Much You Will Invest, and How Often

Have You Made A List Of Available Investment Choices? You Can't Create A Good Investment Plan Until You Understand The Choices Available

Like financial planners, investment advisors must understand your financial goals; knowing when you will need to use your money, and what you will be using it for. 

To give good advice an investment advisor must gather personal and financial data about you. They must understand your tolerance for risk and your expected rate of return on your investments. 

An investment advisor will use this data to analyze your existing investments, and make recommendations about what you should do going forward.

What Type Of Advice Can An Investment Advisor Give Me?

An investment advisor will tell you
  • What to invest in 
  • Whether to buy stocks or mutual funds 
  • If you should use index funds or active fund managers 
  • Which investments to use inside of your retirement accounts 
  • What risks are associated with each investment
  • What expected rate of return you might receive from your portfolio 
  • Which investments you should own in non-retirement accounts 
  • What types of taxable income your investments will generate 
  • How you can rearrange investments to reduce taxable income 
  • What taxes you will incur when you buy or sell investments