How do I make an Investment Strategy?

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Welcome to Finance and Fury, today’s episode is a flow on from last Monday’s Investment philosophy episode and narrow down into an Investment Strategy.

To invest properly, your investment beliefs need to expand into a strategy, an implementation plan.

So Today:

  • Expand on building an investment strategy from the investment philosophy – check out the worksheet
  • Look at goals and timeframes
  • The types of investments you will use
  • How much additional risk you can take on

Next Week:

  • Investment plans and specifics of putting the strategy in place
  • Implementation of said plan
  • The workbook will be available
  • What to actually do? And what habits you will make a part of your life?

Workbook for this:

  • Spent time putting together a work book for listeners
  • Questions to hep run through this exercise
  • Includes a checklist
Investment strategy:
  • Summary of what you will do
  • Behaviours that are necessary
  • Based off of the investment philosophy
  • Making it into an actionable plan
How to come up with it?
  • Be honest and ask yourself, how you will achieve your goals?
  • Has to be in line with the investment philosophy
  • The strategy helps you keep to your philosophy
  • How do you view your investments? What do they mean to you?
  • The strategy is how you articulate your strategy throughout your life
Categories of investment strategy questions:
  1. Goals and timelines
  2. How much risk can you withstand?
  3. Strategy to use
Outline:
  • Goals and timelines. We have talked about financial goals before.
  • Your attitude towards risk – are you a lover or hater?
  • Identifying a risky strategy when you see one – crystalising losses or not, will you be better off?
  • Avoid emotions and hard sells with the fear of missing out
  • Behaviours and emotions – knowing how you will react ahead of time helps avoid the worst case scenario
  • Mental exercises – not as good as the real thing but they help
  • Strategy specific – how will you look at achieving the goal?
  • Look at the types of investments that will help you achieve you goal
An example of mine: listen to find out details
  • Investment philosophy are these 2 simple statements
  • Investment strategy is 3 statements – how I implement my philosophy

Next episode:

  • Work through some options to build wealth
  • The basic building blocks to pursue financial independence
  • Investment plans and specifics of putting the strategy in place
  • Implementation of said plan
  • What to actually do? and what habits you will make a part of your life?

Get ready for the workbook next week. It will be available on the website.

Thank you for listening. If you have any questions or want to get in touch you can do so here.

Resources:

Last week’s episode - https://financeandfury.com.au/how-do-i-make-an-investment-philosophy/

My financial goals - https://financeandfury.com.au/goals-for-the-new-year/

Setting your goals, with workbook - https://financeandfury.com.au/one-of-the-best-places-to-invest-in-2019-is-to-invest-in-yourself/

Overview of risk - https://financeandfury.com.au/risky-business/

Investing in 2019 - https://financeandfury.com.au/investing-in-the-share-market-in-2019/

196 episodes available. A new episode about every 2 days averaging 28 mins duration .