CHAPTER 2 Financial Fundamentals
Let's talk about financial fundamentals, for many years of working at Finance industry, every time that I need to help my clients with any investment decisions. I always use the following steps to determine what kind of investments were suitable for them.
Here are how we start:
Define your investment goals:
A, Financial Objectives: Determine desired financial outcomes:
• Targeted Rate of Return (ROI) • Cash flow Requirements • Long-Term Capital Appreciation Goals
B, Risk Tolerance: Assess your comfort level with risk and volatility: • Consider your willingness to tolerate market fluctuations and potential losses. • Determine whether you prefer conservative, moderate, or aggressive investment strategies. I have 7 questions for you to ask yourself and get better ideas of which categories that suit you.
1. I need my money for some future occasions:
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