Sigma Wealth

What is investment planning?

People make investments for a number of reasons. Most are to accumulate funds to achieve some specific goal such as for retirement, children's education and even for a dream home. In order to analyze the goal-based portfolios, we need to answer the following questions for each portfolio:

1. What is your investment goal?

For a goal to be meaningful, it must be specific and have a time horizon. Some common financial goals include saving for retirement, creating a current income stream, saving for a down payment on a residence or vacation home, saving for children's college education, accumulating sufficient capital to start a business, or funding major home improvements.

2. What is your time horizon for each goal?

Are you investing for a few months (such as year end holiday), a few years (such as your children's college education), or for the distant future (such as your retirement)?

3. What is your risk tolerance for each goal?

Are you interested in investing conservatively, moderately, or aggressively? This will depend on both your personal risk preferences and the time horizon.
Once these questions are answered, we can determine which investment vehicles will best achieve these goals for you.