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MONEY
2020 TM
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Investment Goals
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Families usually set short-term financial goals (new car, vacation, home improvements) and long-term goals (education fund, house down payment, retirement fund). From these, certain investment goals arise.
- Present income. You may want to supplement your take home pay with dividend and interest income from investments. Retirees often count on investments as a major source of income.
- Capital Growth. You may want to increase the value of what you have invested over a period of time. Historically, land and real estate have had high capital growth.
- Preserve Capital.With some investments, the amount of the original investment is retained. However, inflation may erode the value of your initial investment.
- Inflation Protection. Several investments are designed to retain the purchasing power of the original capital. This is an important consideration for retirement fund investments.
- Tax considerations. Some families, especially higher income families, have a need to shelter some of their income from taxes. Some investments are specifically designed to do just this.
