Invest and Prosper: Goals & Discipline

In mounting an imperative challenge, it is essential that realistic long-term targets be set according to individual aspirations, time horizons, risk tolerances, tax brackets and comfort zones. It’s like embarking on a long highway journey in which there could well be many bumps and detours – maybe even the occasional flat tire or accident – along the way before arriving safely at one’s destination.

Investment goals can vary according to individual lifestyle preferences, estate plans and designated beneficiaries and charities. In addition, they can change as economic and market conditions change and/or as we change; for example, from needing current income to finance a growing family to focusing increasingly on the accumulation of latter-year savings for those ever-lengthening years in retirement.

If there is a single constant in a multi-changing and ever-challenging process it is the importance of building wealth according to a customized and well-constructed investment plan without having to risk precious (and hard-won) savings beyond affordable limits. It follows that successful investing must be a systematic long-term affair in which en passant volatility, distractions and temptations are rigidly subordinated to a purposeful and disciplined building of desired financial resources – for a worry-free retirement above all!

In setting up and managing portfolios to this end, two iron-clad rules must be set, the correct balancing and periodic re-balancing between fixed-income and equity securities, and diversifying the inevitable accompanying investment risks by not having too many eggs int hat one precious basket.While varying market conditions may dictate periodic holding of cash in reserve, the sooner “investable” savings are put to work – and kept at work – in the right personalized combination, the better. And in this process never forgetting those two golden rules, above of never having too much in one class (or classes) of asset at the expense of others.

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