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

Establishing a time frame you can stick with is of the utmost importance. Investments must be chosen with a main goal in mind: safety, income or growth. The first thing you need to decide is which of those three characteristics is most important. Do you need current income, growth so the investments can provide income later, or is safety your top priority?

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

Some investments entail what I call a level five investment risk; the risk that you can lose all your money. These investments are too risky for most people.

One easy way to reduce investment risk is to diversify.

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

Many investment choices have minimum investment amounts, so before you can lay out a solid investment plan you have to decide how much you can invest. Do you have a lump sum, or are you able to make regular monthly contributions?

If you have a larger sum to invest, obviously more options are available to you. In that case you’ll want to use a variety of investments, so you can minimize the risk of choosing just one.

What is an “Annuity”?

Annuities can be structured according to a wide array of details and factors, such as the duration of time that payments from the annuity can be guaranteed to continue. Annuities can be created so that, upon annuitization, payments will continue so long as either the annuitant or their spouse is alive. Alternatively, annuities can be structured to pay out funds for a fixed amount of time, such as 20 years, regardless of how long the annuitant lives.

Contact Bekker Investments:

Contact Bekker Investments to start your planning.