Having a personal plan of action in investing is always essential to any individual. It is always crucial to plan the investment of choice in the early stages of employment because the economic environment we live in is not promised. Investment should have a plan, which means that steps must be followed to achieve the goals.
The first plan of action is establishing the investment goals. Setting the investment goals will help in understanding what is required. This may include purchasing a home or building a retirement home, among others. For this particular case, I will choose the purchasing of a home as my investment goal.
Having established the investment goals, the second step will be determining the amount of money needed to achieve owning the home. For example, a retirement home may cost $250000.
The third step is having the specification of the cash that one owns currently to facilitate the achievement of the investments. In the current situation, there is $200 that is available to facilitate the investment after settling all the related expenses. This means that saving the 4200 will help in the achievement of such goals.
The fourth one is having a list of different investment options that one wants to evaluate. In this particular case, the best investment option to consider is mutual funds. Investing in mutual funds will be of greater importance to the person as it will gather the necessary capital to achieve the goals.
The fifth step is evaluating the risk factor and the potential returns on all the investments that one will take. For this particular case, mutual funds’ investments will allow one to consider the medium to high-risk investments because of the returns and some changes that may take place within the external environment.
The sixth step for a plan of action in buying is making sure that the possible assets are reduced to a manageable number. Having a few reasonable numbers of support will help one know how they can divide the available capital to yield the required returns. That means that you remain with only investment options that you can meet all their obligations.
The seventh step is then to choose at least two essential investments that you can manage. This will help in yielding enough capital. Lastly, it is always necessary to evaluate the investment program. Hence, it means that you should assess to eliminate any possible impacts that might affect the investment. The whole plan should be reviewed to make any necessary changes.