Fisher Investments Europe: 3 Planning Tips

Fisher Investments Europe has identified three steps to help you plan your investments in line with your various financial goals. Achieving these goals in the long term will largely depend on the thinking and strategic decisions that you will implement. today.

1. Prioritize your goals and set deadlines

The first step is to make a list of your financial goals and estimate how much you will need for each of them. A short list will help you focus on your priorities. Prioritize your goals based on their importance to you and your family. In each case, ask yourself if this is a need or a desire. Most often, necessity should come first. It is possible that you wanted take a vacation, but you had except for your pension, in which case that consideration certainly prevails.

Another important factor in prioritizing your financial goals is the amount of time you have available. Fisher Investments Europe recommends dividing your investment goals into one of three categories: short-term, medium-term and long-term. This is an important point because the time frame set for each of your goals will affect your investment strategy. Some examples :

  • Short term: The money you will use over the next three years to achieve goals such as renovating a kitchen, funding a big wedding, or a dream vacation.
  • Medium term: money you will need in four to seven years. The goals pursued here may include the creation of a contribution to the purchase of real estate or the financing of start-up activities.
  • Long term category: Money that you will need for eight or more years. This category may include more important financial goals, such as funding your pension.

TIP – Hire a financial professional. It can be difficult to estimate the funds required to achieve your goals, especially for the largest and most distant in time. A finance specialist can help you set your goals and prioritize. As you get older, he will give you objective advice and ideas to help you stay on track.

2. Set the right mix of investments for each goal

Once you’ve broken down your goals into different categories based on the timeframes set, it may be wise to create different investment portfolios to achieve them. This will allow you to determine the asset allocation, that is, the combination of stocks, bonds, cash or other investments that is appropriate for each financial horizon.

In doing so, you maximize your chances of achieving your goals by exposing yourself to adequate risks. As a general rule, the longer your horizon, the more risk you can afford. Here are some examples of asset allocation for different time horizons:

  • Short term category (next 3 years): For such a short period of time, maintaining your capital will be a major challenge, which often means exposing yourself to limited short-term volatility. Here you should choose more stable investments such as cash, money market funds or certificates of deposit. To the extent that this asset allocation is disadvantageous, growth will mainly come from regular payments.
  • Medium-term category (from 4 to 7 years): over a longer horizon, the portfolio can be focused on both growth and capital preservation. For Fisher Investments Europe, this means investing in stocks and bonds. The equity component will provide growth, while the bond component will help reduce short-term volatility.
  • Long-term category (8 years or more): For these long-term goals, growth will be paramount. Fisher Investments Europe recommends that this portfolio be almost entirely invested in stocks. Short-term volatility will only be a small price to pay compared to the long-term growth stocks can provide.

ADVICE. Automate your investments. Regular payments to savings or securities accounts can be burdensome. If your bank allows it, why not automate the process? This will make things easier and prevent you from accidentally spending the money you need to reach your financial goals.

3. Conduct regular checks

While it’s not necessary to keep an eye on your accounts all the time, it’s important to review your investments at least once a year to make sure you’re on track to reach your goals.

Your investment strategy will probably not change, but you may need to rebalance your portfolios from time to time to keep your investments in line with your goals. Over the years, as you approach the end of your medium and long term goals, you will also likely need to adjust your asset allocation to fit the shorter horizon.

Once you reach one of your financial goals, others will appear or evolve, and you will also need to adjust your investments to reflect these new goals and priorities. Each new course in your life will include reviewing your investment strategy to change it if necessary.

ADVICE. Don’t underestimate your retirement needs. Don’t think that as you approach retirement age, you can get away with low-risk, low-return investments. Many people live 20-30 years or even longer after retirement. So covering your expenses throughout your retirement can be a long-term goal that may require a significant equity investment to offset inflation and ensure you don’t run out of money.

While purposeful investing is necessary to reach your goals, that doesn’t stop you from pursuing multiple goals. By prioritizing your financial goals, choosing the right combination of investments for each, and regularly tracking your investments, you can increase your chances of hitting various goals over time.

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Fisher Investments Europe is the trade name used by Fisher Investments Luxembourg, Sàrl in France (“Fisher Investments Europe”). Fisher Investments Luxembourg, Sàrl is a limited liability company registered in Luxembourg under company number B228486 and regulated by the Financial Sector Supervisory Commission (“CSSF”). The registered office of the company is located at the following address: building K2, Forte 1, 2a rue Albert Borschette, third floor L-1246 Luxembourg.

This material reflects the general views of Fisher Investments Europe and should not be construed as personal investment or tax advice or a reflection of the client’s performance. There can be no assurance that Fisher Investments Europe will retain this opinion, which is subject to change at any time if new information or analysis is communicated to it or if it is reassessed. The information contained in this document is in no way a recommendation or a forecast of market developments. They are provided for information only. Current or future market conditions may differ materially from those presented here. Furthermore, no warranty is given as to the accuracy of any assumptions made for illustrative purposes. Investing in financial markets carries the risk of losing all or part of the invested capital, and there is no guarantee that this amount can be recovered. Past performance is neither a guarantee nor a reliable indicator of future performance. The value of your investments and the return on them may fluctuate depending on changes in the financial markets and world exchange rates..

Investing in the stock markets carries the risk of losing all or part of the capital invested, and there is no guarantee that this amount can be recovered. Past performance is not a guarantee of future results. Fluctuations in international currency rates can lead to a decrease or increase in efficiency. This material reflects the general views of Fisher Investments Europe and should not be construed as personalized tax or investment advice, nor as a reflection of the performance of the company or its clients. There can be no assurance that Fisher Investments Europe will retain this opinion, which is subject to change at any time if new information or analysis is communicated to it or if it is reassessed. In addition, no guarantees are made regarding the accuracy