Here is a truth we are all aware of – everyone is different. So it should go without saying that our investment plans should be different too. The plans of a 22 year old full time person will be very different to those of a 50 year old individual. Similarly the plans laid down by a couple with two children will differ greatly from those thought up by a single person.
Unfortunately we all have a habit of comparing ourselves to others. This means that if you are trying to work out an individual investment plan and you happen to talk to someone else who already has one, you will consider theirs. You will automatically wonder if their plan would suit you as well. If it did it would provide you with a quick and simple way out of your situation.
Setting your own course
The important thing to remember is that no plan suits everyone. Even if this other person’s investment plan is working well for them, it could be disastrous for you. By all means check it out and see whether it could be good for you, but be prepared to discard it too.
The trick is to know what you expect from your investments and why you want to set them up in the first place. This brings us back to the idea of the 22 year old and the 50 year old mentioned above. The 22 year old will only just have started on their working life, whereas the 50 year old will be looking towards retirement not too far in the future. Their goals and ambitions will be very different indeed, and these will drive two very different types of investments.
What suits you?
Remember that it isn’t just a case of settling into an age group though. Don’t be fooled into thinking certain types of investments are good for people of a certain age. You need to drill down into your life and lifestyle to see which investments will work best for you. If you don’t have that knowledge you won’t be able to pick the right outcome.
This is the one main reason why everyone should take their time in choosing the most appropriate investments in each case. If you exhibit a kneejerk reaction to a particular investment you could live to regret taking part in it – or indeed rejecting it – for a long time to come.
So the key here is to strike out on your own. Take advice from others if need be, but take it as that – advice – and nothing more. You must ensure you make the right decision for you and you alone, and this could be very different from any decisions made by other people.
If you understand this and you can keep it in mind for the foreseeable future, you will always find it easier to pick the best investments for your life and family, no matter what your life turns out like.