Why should you set investment goals?

Setting goals help us meet life’s major objectives, from staying healthy to retiring with a well-feathered nest egg. Investment goals provide structure and purpose to the money we allocate to investment products, such as stocks, bonds and funds.

Why is a well-defined investment goal important?

Implementing a well-defined investment goal is the first step toward building a logical and profitable investing strategy. This ensures that the investor’s financial decisions are compatible with their goals and requirements. Many people begin investing with the intention of saving assets for retirement.

How do you set investment goals?

The Australian Investors Association recommends using the SMART format when setting investment goals. Here are the elements: Start by writing a document or journal that lists each investment goal and how you’ll measure progress. List as much detail as possible, considering both short-term and long-term objectives.