Preparing Your Investment Objective

Completing your investment objective is a very important part of retirement planning. When you decide to work with a financial planner, she will want you to determine an investment objective. Here are the basics of the investment objective and how it is determined.

Investment Objective

The investment objective is a standard form that most financial brokers will use when they start working with a new client. This document is going to help the financial advisor determine exactly what to do for you as a client. It will help her determine exactly what you want to accomplish as an investor. It will also give her some insight as to how she should create your portfolio mix. This is a vital part of the retirement planning process, as it helps the financial planner determine where you stand financially and ultimately where you would like to be.

How It Is Completed

In order to complete the investment objective, the financial professional is going to provide you with a detailed questionnaire or survey. This document is going to ask you many different questions about your financial life and your investment goals. In most cases, this survey is going to take quite a while to fill out. This is something that you should put some serious thought into. You will also want to make sure that you provide accurate information throughout.

What Is Covered

The survey will cover quite a bit of information. It will ask everything about your financial life and how far along you are in the process of saving for retirement. The survey will ask how much money you and your spouse make on an annual basis. It will also ask your current net worth and approximately how much money you spend each month. For this part of the process, you will need to have access to your financial statements and provide good estimates. This section of the questionnaire is extremely important to the success of creating the investment objective.

The survey or questionnaire will ask for information aside from this specific financial information. For example, it will ask how much longer you have to invest before you reach retirement age. This will be different for every individual because not everyone wants to retire at the same time.

The financial planner will also use the survey to understand what type of investor you are. It will ask questions about your level of risk aversion and whether you are comfortable taking on risky investments. It will also seek information about any plans that you have to make charitable donations or leave assets to beneficiaries.

During the process of filling out this questionnaire, you will also need to note whether there are any types of securities that you would not like to invest in.

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