Investments are good since they keep one’s money growing. For one to have good returns on their investments, they ought to have a proper investment plan. Investment planning involves coming up with one’s goals and matching them with their financial resources. The following is the process of how to plan your investments so that you can have a return on your investments.

Set realistic goals

This is an important step in investment planning. One should come up with the specifics of what they want to achieve in terms of goals. These goals should also be realistic. The good thing is that the goals can be adjusted since where one is financially today is not necessarily where they will be some two years to come. Set the goals that are realistic as of now and you can always change them as time goes by

Determine how much money will be saved

This may depend on how much your earnings are let’s say in a week or a month if one is to save monthly. The best way of saving is to look for alternative sources of income. If one is employed they can look for a side business that will supplement their income and hence help to meet their monthly savings. The amount being saved will need to be calculated properly to help one achieve their goals. if the monthly savings will be too high then one may need to reset their goals.

Selection of an investment strategy

This may be determined by the goals one has If one’s goals are short term, one should use a low-risk approach strategy. Such investments should guarantee one return on their investment. For the long term goals, one should choose to use the high-risk approach. Alternatively one may opt to go for the balanced approach in which they are supposed to balance the high risk and low-risk investments.

Development of an investment policy statement

Creation of this investment policy statement will serve as an important guide in your making of investment decisions. One can also seek the services of a financial adviser to help them come up with this statement. Some of the things included in this policy statement include specification of one’s investment goals together with their objectives, a description of the strategies that will be used to achieve their specified objectives, a description of their expectations on returns and the time frame of their achievement.

Risk taking

One is also expected to include the much risk they will be willing to take, the type of investments that will make up their portfolio and the ease of accessibility to their money. They are to say how their investment portfolio will be monitored to ensure they are guaranteed of returns come the maturity of the period they invested.