Planning for Your Investment Program

For some, the question may be, why should I start planning my investment program now? The quick answer is that this is the best time to begin your program. However, that is always true if you still need an investment program.

 It is true because of the Time Value of Money.

Example: Suppose you save $150 every month for twenty years. That savings would total $36,000. But if your investment averaged 8% each year and all these earnings were added to your investment account, the total would be $82,371.54. This shows us that the sooner we start saving for our investment, the more time our assets will have to work for us.

Determining the driving force behind your investment plan to establish your goals would be best. From there, you work backward.

If your goal were to have $82,371.54 in twenty, then you need to figure out: 

• How much money is required in order to fulfill that goal?
• How much risk you’re willing to assume?
• What possible economic or personal conditions might alter these goals?
• Is your plan realistic?
• What is your commitment to meet this goal?

Using the example given, we should be able to develop realistic answers.

• The money needed to finance this goal is $36,000.
• The risk that was figured in was the risk of investing in real estate, for it averages an anal increase of 8%.
• Given the forecast that things will continue on their path, most people with such goals are excited when they see their goal being obtained. However, there are some life-altering events that could cause us to change these goals. Though the goal may become altered, it is also more likely that we’ll weather the event storm better because of our investment program.
• This plan is realistic based on past estimates. 
• How much you desire change will influence your commitment to this goal.

Once these things have been answered you need to ask yourself what you will invest in.

Then, follow your plan.Note: Images on this blog site are from a free source or taken by the author. No image or group of photos is intended to represent the people the author serves. The author does not care about Race (that is a politically correct term that he does not like because we are all of the same Race, the Human Race. He prefers the term ethnicity), color, religion, sex, gender, marital status, disability, genetic information, national origin, source of income, Veteran or military status, ancestry, citizenship, primary language or immigration status. He is a service provider for all people. We will all rise together when we band together and help one another. Joseph Erwin is a Real Estate Broker, DRE # O2131799, and a CA general contractor # B 696662. He’s a member of the CRMLS and The East Valley Association of Realtors located in the Inland Empire region of Southern California.