Set Investment Goal


If investing is a journey, your investment goals are the destinations you hope to reach with the wealth you build over time. The first step towards worry-free financial situation is setting investment goals. A comfortable retirement is the most common investment goal, but most investors have more than one goal. The following are some examples:


Short-term goals Mid-term goals Long-term goals
- Travel
- Marriage
- Emergency fund
- Buy a flat
- Child education funding
- Retirement planning
- Estate and trust planning


Today's investor has no shortage of investment options from which to choose. When examining your investment options, you should consider the following factors:


Time horizon: Do you expect to use the proceeds of your investment in the short or long term?


Liquidity: Is there a chance you may need to convert your investment into cash for emergencies or switch quickly into other investments?


Income: Will you be counting on your investment to provide you with a regular source of income?


Capital growth: If long-term capital gain and protection from inflation are your goals, you could look for investments that offer high growth potential over 5 to 10 years.


Balance your investments: Some investments provide greater assurance regarding the safety of your principal investment. The ideal situation is to balance your investments so that you can participate in any gains and, at the same time, protect yourself from losses.


Be prepared to adjust goals
The goals you establish when you begin your investment plan are likely to change in the future. As you realise some short-term goals, there will be other new goals. When you reach different life stages with different needs, you will likely need to review your goals. It is important for you to share any major changes in the circumstances affecting your life with your financial professional. In any event, it is a good idea to review your investment goals regularly with your financial consultant.


The above information is for reference only and will not be considered as professional opinion and suggestion, and do not contain any intention or inducement to form a contract. Therefore, no investment decision should be made upon the above information. Investment involves risks. Please read corresponding investment information carefully before making any investment decision. If you have any query regarding investment or investment-linked products, please contact your consultant or refer to corresponding Principal Brochure for further information.