Investing Based on Your Goals
Don’t lose sight of your financial goals! 📈 Hear from Commas portfolio manager Conor on the importance of understanding why you’re investing before diving into investment strategies.
“If you’re aiming to maximize your return over any shorter time period, you may be losing sight of why you’re investing those funds in the first place. For example, if you know you need to buy a car in the next three years because maybe your car is getting old and it’s time for an upgrade, if you invest those funds fully in the stock market, you’re taking on outsized risks. So much so that one year later if your car breaks down and you need to buy one; maybe the 10 grand you set aside is now 7 grand or 5 grand and you have to change the kind of car that that you’re looking to buy. That would be a difficult investment decision and really mistake to make because you forgot to tie the reason you’re investing with your portfolio. So, investing according to your goals is really the very first step you need to make before you decide exactly what strategy you’re going to enact.”