Series 82: 3.4.1. Investment Goals

3.4.1.  Investment Goals

Though many different factors should be considered when determining what investments to recommend to a customer, there are some basics to follow when defining investors and investments. First of all, how you invest your money is driven primarily by what you need the money for. Do you need it to buy groceries tomorrow? Do you need it for a down-payment on a house in the next five years? Or do you want to save it for retirement or for a trust for your future grandchildren? Knowing this can help you assess risk tolerance, and risk tolerance, in the world of securities and investing, is all about volatility and time horizon. How big are the swings you are willing t