If you have decided to invest, it is important that your investment goals are realistic .By having these goals, you will be on your way to controlling your financial future. You may have not one, but several or many goals. Your investment strategy will be based on your goals and the amount of risk you want to take. Time is an important part of investing. If your money is invested for longer, you will be able to reach your goals because of the compound interest that is added on (depending on the investment). Risk will be reduced as well, because overtime, the ups and downs in the stock market will have smoothed out.
SHORT TERM INVESTMENT GOALS
A short term investment goal takes place within the next 1-3 years. Conservative investments such as cash are used to achieve these type of goals. Examples of short term goals include; a holiday, a car or unpaid leave.
MEDIUM TERM INVESTMENT GOALS
A medium term goal takes place between the next 3-5 years. Conservative investments and other income producing growth investments are used. Examples for these types of goals are putting down a deposit for a house or to set up a business.
LONG TERM INVESTMENT GOALS
A goal is a long term investment goal if it is over five years away. This type of goal is funded with investments in growth assets such as shares or property. Examples for these goals can include saving for your children's education, a holiday house or your retirement.