The strategy "Formulating an investment plan" is designed to maximize returns and achieve financial goals by implementing a well-rounded investment strategy. It involves diversifying your portfolio by considering different asset classes like equities, bonds, real estate, and commodities such as gold. By investing internationally and leveraging index funds, you broaden your exposure and hedge risks effectively. For example, including real estate for stability can protect against market volatility.
Setting clear financial goals is another pillar of this strategy. It involves identifying and quantifying financial objectives, determining investment returns required, and setting timelines for achievement. Regularly tracking progress and consulting with a financial advisor ensures you stay on course. For instance, automatically contributing to investment accounts aligns with achieving set goals.
Staying informed and proactive ensures you make informed investment decisions. Engaging with financial news, attending seminars, and reviewing investment statements are crucial for understanding and adapting your plan. Learning from successful investors and adopting new tools keeps your strategy relevant and effective.
The strategies
⛳️ Strategy 1: Diversify your portfolio
- Assess your risk tolerance
- Research and identify various asset classes
- Allocate a percentage of your portfolio to equities
- Allocate a percentage of your portfolio to bonds
- Include real estate investments for stability
- Consider commodities such as gold for hedging
- Invest in international markets for broader exposure
- Review and adjust asset allocation annually
- Utilise index funds for diversified exposure
- Monitor market trends and rebalance as needed
⛳️ Strategy 2: Set clear financial goals
- Identify short-term and long-term financial goals
- Determine the amount needed to achieve each goal
- Set a timeline for each financial goal
- Calculate the annual investment return needed
- Identify potential investment options for each goal
- Allocate investments based on goal timelines
- Reassess goals and adjust as financial situation changes
- Set up automatic contributions to investment accounts
- Track progress towards financial goals quarterly
- Consult with a financial advisor for advice on goals
⛳️ Strategy 3: Stay informed and proactive
- Subscribe to financial news platforms and updates
- Attend investment seminars and workshops
- Join investment communities and forums
- Read books on investment strategies and principles
- Regularly review and understand your investment statements
- Schedule bi-annual meetings with a financial advisor
- Stay updated on economic indicators and events
- Learn from successful investors' strategies
- Analyse past investment decisions for improvements
- Adopt new investment tools and technologies as available
Bringing accountability to your strategy
It's one thing to have a plan, it's another to stick to it. We hope that the examples above will help you get started with your own strategy, but we also know that it's easy to get lost in the day-to-day effort.
That's why we built Tability: to help you track your progress, keep your team aligned, and make sure you're always moving in the right direction.
Give it a try and see how it can help you bring accountability to your strategy.
