When you open an investment account you need to start with the end in mind. What long-term goals are you trying to achieve with your investment(s)? Understanding your goals, time horizon, and risk tolerance are all keys to ensuring that you select the appropriate investments and open the right account type. The goal of investing is not to attempt to make as much money as possible. The goal of investing is to achieve a predetermined goal with the least amount of risk possible.
Understanding the end goal will also help you determine the right account type. Some accounts are designed to provide tax advantages for a myriad of goals including retirement goals, educational goals, and quality of life goals. For example, if you are saving for your kid’s education you may want to use a 529 Plan and choose investments in that account that are consistent with when your shield will attend college.
Your goals for investment may be risk-averse and your advisor may recommend an annuity or insurance product that can provide some measure of safety. There are a myriad of investment opportunities each with the specific needs of the investor in mind. When InvestorKeep understands your goals we can alert you to areas of opportunity or concern to ensure your investments are working for you personally.