Have a Plan
Would you attempt to build a treehouse without a plan? Personally, we’d research various treehouse designs. How many children will use it? How big does it need to be? Would it be better to build a small treehouse close to the ground now and a larger, higher treehouse when our children are older? Which of our trees can accommodate such a treehouse? How much wood and hardware do we need? What type of wood and hardware do I need? Wow! We sure need a plan.
What are your goals?
What are you saving for? Are you saving for a new car? Are you saving for your children’s tuition? Are you saving to purchase a vacation home? Are you saving for retirement? Are you saving in order to be able to leave money to your children or to your favorite charity?
How much time do you have?
Think about this in two ways. First, how much time do you have to reach a particular goal? If your children will need tuition in exactly five years, then you have no time flexibility. If you plan to retire 25 to 30 or so, you have quite a bit more flexibility. Second, how much time do you have left as a person. Sadly, none of us live forever, and if you are 25 years old you have a lot more time flexibility than a person who is 70 years old.
What is your financial situation?
In terms of current savings and investments, what do you have right now? It’s pretty obvious, but the more you have now, the easier it will be to achieve your goals. It will also give you some flexibility in terms of the types of investments you can make. With more money, you will be able to take on more risk and possibly achieve even more goals.
What is your regular financial budget?
How much money can you afford to regularly contribute to your investment portfolio? In much the same way, the more money you can afford to regularly contribute and help grow your savings and investments, the more flexibility you will have in terms of asset class choices and risk acceptance.
Tailor your plan
Given your goals, goal specific time horizons, current financial situation and your ability regularly contribute to your savings and investment accounts, you have the building blocks to tailor your investments specifically to your personal situation.
Latest Market Insights
Outrageous Predictions 2023: The War Economy
- The constantly growing global need for energy drives the world's richest to huddle up and launch a R&D project in a size the world hasn't seen since the Manhattan Project gave the US the first atomic bomb.
French President Macron resignsThe political stalemate in France and the rise of Marie Le Pen following the 2022 elections corners President Macron, forcing him to give up on politics and resign from his position. At least for now.
Gold rockets to USD 3,000 as central banks fail on inflation mandateAs markets and central banks realise that the idea that inflation is transitory is wrong, and that prices will remain higher for longer, gold is sent through the roof, hitting a price tag of USD 3,000
EU Army forces EU down path to full unionWith continued challenges in the region and a US military that isn't aggressively enacting its former role as global policeman, the European Union agrees to create its own armed forces, bringing the whole region closer.
A country agrees to ban all meat production by 2030In an effort to become one of the global leaders on the path to net-zero emissions, one country decides to not only put a heavy tax on meat, but to ban domestic production entirely.
UK holds UnBrexit referendumFollowing a recession and domestic pressure, the United Kingdom is thrown into political turmoil that will end with a vote to wind back Brexit.
Widespread price controls are introduced to cap official inflationHistory tells us that with the war economy comes rationing and price controls. And this time is no different, as policymakers introduce strict price controls that lead to a range of unintended consequences.
OPEC+ & Chindia walk out of the IMF, agree to trade with new reserve assetSanctions against Russia have caused widespread turmoil due to US Dollar moves in countries across the globe that don't consider the US an ally. To relieve themselves from this, they leave the IMF and create a new reserve asset.
USDJPY fixed to the USD at 200 as Japan overhauls financial systemFollowing the challenges that faced the Japanese Yen in 2022, the Bank of Japan attempts to keep the currency from sliding. Unsuccessful on the long-term, Japan will launch a reset of its entire financial system.
Tax haven ban kills private equityWith the war economy comes an increased focus on national interests and sovereign nations' ability to assert themselves. In that regard, the OECD countries turn their attention on tax havens and pull the big guns out, banning them altogether.
Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer)