Crafting your investment path.

Before you can start investing, you need to create a financial plan followed by an investment strategy.

Familiarize yourself with the what, when and how of setting up a financial plan and investment strategy.

Let’s discuss.

[ THREAD ]

1. What do you need the money for?

There are numerous reasons why people need money.

Think of your long-term goals.

To start a business?

To fund your child’s education fund?

To build an investment property?

2. When do you need the money?

It is important to know when you expect to achieve your goal by.

Figure out ideally by when your investment needs to produce the returns.

Your investment strategy should be aligned with the date you expect the money.

3. How much do you need?

Your need to have a number (monetary value) attached to your goal/s.

How much do you need in order to save up for your child’s education fund?

This is the amount that your investments should produce to achieve your goal/s

4. How do you craft an investment strategy?

Craft an investment strategy based on your goals, time at hand and risk appetite.

An easy formula to use to help you reach your investment goals is:

Time x Amount x Yield

5. Stock Investing strategies

- Index Fund: Buying a mutual or exchange traded (ETF) that tracks an index,
passive strategy.

- Buy & Hold: Passive investing strategy of buying stocks and holding long-term
(10 years).

- Long Short Equity: Buy stocks you expect to appreciate and sell that are overvalued.

- Growth: Buy growth stocks with earnings expected to increase at an above
average rate.

- Value: Buy stocks that are undervalued according to your fundamental analysis.

There are many stock investing strategies people use.

Make sure to do your due diligence
before taking any decision.

Thank you for reading up until this point.

I hope you found value in this thread. Before you start investing, remember to follow this sequence.

1. Set up a financial plan

2. Reduce debt

3. Build an emergency fund

4. Save 10% of your income

5. Invest the surplus

I hope this helps.