Create your investment plan: Simple Steps With Examples


What is financial planning?

An investment plan is a business project that will help you achieve a certain financial goal within a specified period of time. Before you start investing, you need to decide what is the more important factor – the safety of keeping funds, increasing their initial amount or monthly income.

If you need to support yourself in retirement, the first step is to start by drawing up an investment program. To do this, you should focus on the sample investment plan. In this way, you will be able to make a forecast for further expenses and income, to determine what the state of your account will be in a few months or tens of years. Don’t forget that regular deposits or withdrawals will affect the amount in the future.

How to make an investment plan? You will be able to calculate the perfect time for withdrawing money and find out when the entire account balance is required. The existence of a time frame allows you to determine the type of high return of your investment – short-term (for 1 year), medium- or long-term (for 2, 3, 4, 5 years). If you don’t know how to analyze and invest more profitably, contact the Orca app company, where they will help you draw up an investor plan.

How to build an investment plan?

The best way for investment planning is to answer the suggested questions and use additional information about the future of your earnings:

  1. Determine the goals and objectives of your investment.
  2. Choose a suitable strategy.
  3. Name the time frame.
  4. Provide information on possible risks and the most acceptable ones.
  5. Choose the type of investment, decide whether you will be able to withdraw funds before the desired amount is accumulated.

Don’t forget that you need to decide on the type of assets. Whether you invest in securities,  real estate or earn free stocks is up to you. You can choose a stock investment plan. It is also worth studying your current progress on a regular basis – is there any point in continuing to invest or is it worth thinking about drawing up a new big plan. 

Goals and objectives

You can indicate how much money you want to get for investing in your future, or you can choose another method. Calculate how much will be enough for your retirement to ensure a normal life. Perhaps 500,000 thousand dollars will be enough for you. And if you want to travel and buy new real estate, this amount may not be too small.

Monthly savings

Have you decided on the amount you want to save by a certain age? Now think about how much you need to save each month. If you have chosen a small amount of funds and it does not harm your financial situation now, your long-term plan is drawn up correctly. If not, choose another saving plan or investment method.

Choosing a strategy

By saving money for a long time, you can focus on investments that carry high risks. In this case, it is best to wait for the growth in the value of stocks or other assets in which you invest. There is no need to take risks for monthly investment plans. You will know exactly the status of your account in the short term and will be able to use your funds without any problems.

Creating an investment policy statement

To lower your risks while investing, you need to create an investment policy statement. It will indicate the solutions and other aspects that you were guided by when you were making your contribution. If you have a financial advisor, your investment plan must specify the terms and conditions that the specialist follows when providing investment assistance.

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