 Rule 2: Have a Financial PlanPanos Mourdoukoutas
Chapter 2 in Intelligent Investing in Irrational Markets, 2013, pp 17-25 from Palgrave Macmillan Abstract: Abstract Intelligent investing isn’t an open-ended process whereby investors use financial markets to get rich quickly. Neither is it a panacea, a one-size-fits-all process. It is rather a process that allows these investors to achieve certain financial goals. That’s why intelligent investing begins with financial planning, which includes the financial goals and priorities to be pursued; the financial constraints and the means of achieving them; and a strategy that allocates funds to different financial assets that help investors match financial goals and priorities with financial means and constraints. This means that different investors may pursue different investment strategies, as goals and priorities and means and constraints differ across individuals. Younger individuals, for instance, may pursue an investment strategy that provides maximum liquidity, as they may need the invested funds in the near future to pay for education or for a down payment to buy a house. Keywords: Mutual Fund; Market Risk; Corporate Bond; Financial Plan; Investment Horizon (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-34289-8_3 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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