What are the five basic steps in investing?

There’s a lot to think about before you invest. If you have a plan to follow, you’ll know better what to do with your money and you’ll worry less.
Five steps to plan your investments

1. Set your goals

Ask yourself:

• What are my top financial goals?
• When do I hope to reach those goals?
• How much money do I want to save?

2. Find out what kind of investor you are

Ask yourself:

• How do I want to approach investing?
• How important is it to me to keep my money safe?
• How comfortable am I with the idea that I may sometimes lose money if I want to grow my savings faster?
• How important it is to me to make a good return on my investments?

3. Pick a mix of investment types

Ask yourself:

• What types of investments do I understand and want to buy? Some types of investments may grow faster than others. A good mix of different investments (your asset mix) will help you get enough growth, while keeping losses in balance.
• Am I comfortable choosing my own asset mix? If not, get some expert advice.

4. Choose specific investments

• Once you know your asset mix, you can choose specific investments of each type.
• Do a lot of research before you decide. Look at how an investment has done in the past and how well it may do in the future.
• Again, many people get expert advice.

5. Keep track of your investments

• Keep good records of your investments so you will know how well each one does.
• If you have an adviser, check that he or she is following your investment instructions.

Remember: Smart investing starts with clear goals and good information.

Make sure you understand the investments you are thinking about. Make investment choices that you can live with.

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