Investment Goal Setting: Is Your Investment Strategy Working for You?

Do you have an investment strategy or are you focused on financial goal setting as part of your wealth management? Setting clear goals for how you invest and manage your finances is a key step in planning for a secure financial futureparticularly into retirement.  

Investment Strategy

In this article we will discuss: 

  • The importance of defining your investment strategy. 
  • Five types of investment strategies. 
  • How to choose an investment strategy. 
  • Why you should involve a financial advisor in your planning 

Why You Need an Investment Strategy  

You wouldn’t set off for a holiday or buy a house without careful thought and planning; investing should be no different. Far too often, however, we neglect to consider how we are investing our money and whether our current strategy adequately prepares our finances for our ideal retirement.  

While there’s no legal requirement to have an investment plan or strategyas experts in this field, we know that well researched and well thought out investment strategies can help you find a winning formula towards growing your wealth.  

Why You Need an Investment Strategy

How To Set Investment Goals  

The first step is to set out what you hope to achieve from investing. This forms part of your goal setting. Simply approaching it from the point of view of wanting to earn money and retire with considerable wealth isn’t specific enough. This also will not help you in determining which investments work for your goals and which you should discard.  

An example of a good investment goal according to the Wall Street Survivor would be:  

‘“I want to achieve an 8% average annual return on my investment contributions over the next 10 years in order to amass $200,000 that will be used to purchase a [holiday] home.’ The more specific the objective, the better.” 

Five Types of Investment Strategies 

Once you’ve articulated your goal for investing, it’s time to select the strategy. Let’s review 5 types of investment strategies. 

Income investing 

This is focused on investing in securities that pay regular dividends. Securities that fall under income investing include dividend paying stocks, ETFs, managed funds, real estate trusts (REITs) and bonds. This strategy can provide a steady income stream.   

Impact Investing 

Also known as socially responsible investing, this strategy involves investing in companies who focus on contributing positively to the society and/or the environment. This strategy is more for those who are not focused solely on any possible financial return but the good their investment may contribute to.  

Value Investing 

Value investing is a long term strategy focused on buying stocks that are considered underpriced. It is a buy and hold technique suited for those who do not mind keeping their money fixed on the same stocks for a number of years until they regain or exceed their purchase value.  

Five Types of Investment Strategies

Growth Investing 

This involves investing in real estate or companies that stand to make decent capital appreciation. These are usually younger companies or up and coming suburbs that are expected to grow at an above average rate. Growth investing is a long-term strategy and one that will likely require patience to realise a decent return.    

Small cap Investing  

This strategy is considerably more volatile than others and therefore is usually only recommended for experienced investors.  Small-cap investing is similar to growth investing in that it focuses on small companies with great potential.

Start-ups and young companies may sell their stock cheap but pose a high risk as their performance is as yet unknown. Should they fold or fail, you’ve lost your investment entirely.   

While not expressly required, well researched and well thought out investment strategies can help you find a winning formula towards growing your wealth.  

Set Your Investment strategy with Collins Mann

Knowing which investment strategy to choose can seem overwhelming and the right strategy for you in your 20’s is unlikely to be the right one in your 60s, so how do you choose? What factors should you take into account before diving in?

The best thing to do is speak to a qualified financial advisor. At Collins Mann we can walk you through all of the available options and recommend the ideal investment strategy for your goals. We can help you diversify your existing portfolio and create realistic and exciting financial goals.    

To learn more about investment strategy or how to set investment goals contact Collins Mann today on 07 3251 3200. 



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  • Values-based financial planning.
  • Wealth accumulation strategies.
  • Tax-effective strategies.
  • Risk management.
  • Retirement planning.
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