Personal Financial Planning Guide. Chapter 3-6: Building Wealth through Investment Planning. Investment Planning Steps. Steps to investment planning: Set goals Know investment vehicles Know financial markets and concepts Develop strategy Implement strategy Monitor performance.
Chapter 3-6: Building Wealth through Investment Planning
Steps to investment planning:
Factors affecting financial goals:
Your investment profile includes
Major categories of investments
Types of bonds
Important financial concepts:
Investments, by risk (low to high)
Diversification by itself does not increase returns. However, by diversifying, you reduce ________________.
One of the most important parts of your investment strategy, is ____________ ________________________:
Implementing your financial plan includes:
Your financial plan can be implemented with:
When to buy: on a ___________________ ________________.
One of the biggest mistakes investors make is to “time the market.” This usually results in buying high and selling low.
Saving and investing through payroll deduction avoids trying to second guess which way the market is going.
Cost of investing in mutual funds include:
Sources of info on mutual funds include:
In comparing mutual funds, look for: