Fisher Investments Europe: 3 planning tips

Fisher Investments Europe has identified three steps to help you plan your investments according to your financial goals. Achieving these goals in the long run will largely depend on reflection 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. A short list will help you focus on your priorities. Prioritize your goals based on their importance to you and your family. In any case, ask yourself if it is a need or a desire. In most cases, necessity must come first. It is possible that you wanted take a vacation, but you had except for your retirement, and in this case, this consideration will certainly prevail.

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

  • Short-term category: the money you use over the next three years to achieve goals such as remodeling a kitchen, financing a big wedding, or treating a dream vacation.
  • Medium-term category: you will need the money in four or seven years. The goals pursued here may include contributing to the purchase of real estate or financing new activities.
  • Long-term category: money you will need for eight years or more. This category may include more important financial goals, such as financing your retirement.

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

2. Establish the right combination of investments for each goal

Once you have divided your goals into different categories based on deadlines, it may be appropriate to create different investment portfolios to achieve them. This will allow you to determine the distribution of assets, ie a combination of stocks, bonds, cash or other investments appropriate for each financial horizon.

By doing this, you maximize your chances of achieving your goals by exposing yourself to appropriate risks. As a general rule, the longer your horizon, the greater the risk you can afford. Here are some examples of asset allocations for different time periods:

  • Short-term category (next 3 years): In such a short period of time, saving your capital will be a serious problem, which often means that you are exposed to limited short-term instability. Here you should choose more stable investments, such as cash, money market funds or certificates of deposit. As this distribution of assets will be unprofitable, the growth will be mainly due to regular payments.
  • Medium-term category (4 to 7 years): during this longer period, the portfolio can be focused on both growth and preservation of capital. For Fisher Investments Europe, this means investing in stocks and bonds. The equity component will bring 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 investing this portfolio almost entirely in stocks. Short-term volatility will be only a small price to pay compared to the long-term growth that stocks can provide.

TIP – Automate your investments. Regular payments to savings accounts or securities accounts can be cumbersome. If your bank allows it, why not automate the process? This can make your job easier and prevent you from accidentally spending the money you need to achieve your financial goals.

3. Conduct regular inspections

While you don’t need to keep track of your accounts, it’s important to check your investments at least once a year to make sure you’re on track to achieve your goals.

Your investment strategy probably won’t change, but you may need to change the balance of your portfolios from time to time to make sure your investments meet your goals. As the medium-term and long-term goals come to an end, you will probably also need to adjust your asset allocation to a shorter horizon.

Once you achieve some of your financial goals, others will emerge or evolve, and you will also need to adjust your investments to reflect these new goals and priorities. Every new course in your life will involve reviewing your investment strategy to change it if necessary.

TIP – Don’t underestimate your retirement needs. Do not think that you can do with low-risk investments and low rewards as you approach retirement age. Many people live 20-30 years or even longer after retirement. Thus, covering costs throughout the retirement period can be a long-term goal, which may require significant capital investment to offset inflation and ensure that you do not run out of money.

Although you need to invest purposefully to achieve your goals, this does not prevent 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 achieving different goals over time.

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Fisher Investments Europe – 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 number B228486 and regulated by the Financial Supervision Commission (“CSSF”). Its registered office is located at the following address: K2 Building, Forte 1, 2a rue Albert Borschette, Third Field L-1246 Luxembourg.

This material reflects the general views of Fisher Investments Europe and should not be construed as a personal investment or tax recommendation or a reflection of a client’s business. There is no guarantee that Fisher Investments Europe will retain these views, which may change at any time if new information or analysis is sent to it or if it is re-evaluated. The information contained in this document is in no way a recommendation or forecast for the development of market conditions. They are for reference only. Current or future market conditions may differ significantly from those presented here. In addition, no guarantee is made as to the accuracy of any assumptions made to illustrate this document. Investing in financial markets involves 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 investment and the return on it may vary depending on changes in financial markets and world exchange rates.

Investing in stock markets involves 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 not a guarantee of future results. Fluctuations in international exchange rates can reduce or increase efficiency. This material reflects the general views of Fisher Investments Europe and should not be construed as personalized tax or investment advice or as a reflection of its activities or the results of its clients. There is no guarantee that Fisher Investments Europe will retain these views, which may change at any time if new information or analysis is sent to it or if it is re-evaluated. In addition, there is no guarantee of accuracy