Investing Basics - What Are Your Investment Goals? by Brian McGregor

When it comes to investing, many first time investors want to jump right in with both feet. Unfortunately, very few of those investors are successful. Investing in anything requires some degree of knowledge and skill. It is important to remember at the very start that few investments are a sure thing - there is always the risk of losing your money!

Before you do jump right in, it is better to not only find out more about investing and how it all works, but also to decide what your goals are. Indeed your goals can help you to determine the method and type of investing you adopt.

What do you hope to achieve with your investments? You could be looking to fund the college education of your children or grandchildren. Or you maybe want to contribute your investment proceeds towards buying a new house. Or it could be you see that investing might be a way of making your retirement years more comfortable. So, before you invest a single penny, really think about what you hope to achieve with that investment. Knowing what your goal is, will undoubtedly help you to make smarter investment decisions along the way!

Too often, people invest money with thoughts of becoming rich overnight. In investment terms, it is very unlikely that you will become rich overnight. It is far more likely that your investments will grow slowly over time. In reality, this type of investment is the only way in which you can guarantee your plans to assist with your retirement, your new house or a child's education. Perhaps the only way in which an overnight change can be made in the circumstances of most people would be if they win the lottery. This is not a true investment. It is more in the category of gambling, with the odds stacked very high against the individual player.

If you do prefer investing with a view to making quick returns, there are high-yield, short term products. But it would be advisable for you to learn as much about this form of investing as you possibly can before you place your money at risk. As you might expect, the general rule is that the higher the return, the higher the risk.

You should strongly consider talking to a financial planner before making any investments. Your financial planner can help you determine what type of investments are appropriate to achieve the financial objectives you have set. From their experience, they will be able to provide you with a realistic view as to the kind of returns you can expect, how long it will take to reach your specific goals and the level of risk which each investment type represents.

Remember, investing requires more than simply calling a broker and telling them which stock or bond you want them to buy or sell on your behalf. Successful investors invest their own time in research and in gaining knowledge about the markets in which they wish to invest.

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