A Guide To Financial Planning By FinancialPlannerSite.com

Investment Planning

Investing planning is the process of analyzing your current investment portfolio and financial situation, identifying your investment goals and the level of investment risk you are prepared to take on, researching possible ways to reach those goals (or seeking advice from a financial planner), writing an investment plan, reviewing and adjusting your portfolio perdiodically (eg. every three to 6 months).

Unless you are a savvy investor, probably the best and the easiest way to formulate an investment plan is through a financial planner. Financial planners are investment professionals that can help you identify what your financial plan needs and give you solid advice on your possible investment options.

The trick to writing a successful investment plan is to set a realistic return on investment (ROI) objective and balance your portfolio around this ROI goal. A good real rate of return (RRR) to aim for is between 5%-10% per annum.

You will need to diversify (obviously) since various sectors will be down, whilst others go up (eg. property could be booming whilst stocks are down or visa versa). If you put all of your investment hopes and dreams into the one asset class and it dissapears, than you will have a very hard (if not impossible) time trying to regain your investment losses.

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