+- Dividend Growth Forum (http://DividendGrowthForum.com)
+-- Forum: Dividend Growth Investing (http://DividendGrowthForum.com/forumdisplay.php?fid=15)
+--- Forum: My Portfolio (http://DividendGrowthForum.com/forumdisplay.php?fid=14)
+--- Thread: Alice in Wonderland - Investment Plan (/showthread.php?tid=2076)
Alice in Wonderland - Investment Plan - Scooterd - 12-14-2021
While some have heard the quote attributed to Lewis Carroll "If you don’t know where you’re going, any road will get you there". It may surprise some, the actual line is not in the Alice in Wonderland books. The actual exchange is :
“Would you tell me, please, which way I ought to go from here?”
“That depends a good deal on where you want to get to,” said the Cat.
“I don’t much care where–” said Alice.
“Then it doesn’t matter which way you go,” said the Cat.
“–so long as I get SOMEWHERE,” Alice added as an explanation.
“Oh, you’re sure to do that,” said the Cat, “if you only walk long enough.”
Though the sentiment between the two is similar enough. In the investment world , The dialog between Alice and the Cheshire Cat helps drive home the importance for investors to develop an investment plan. If you don't develop an investment plan, You will certainly end up SOMEWHERE (“Oh, you’re sure to do that, said the Cat”) However, you may not end up end up where you wanted to be especially "if you walk long enough.”without a map / plan". When investing, it's important to understand "which way I ought to go from here?”
Your investment plan is not a checkoff item to be completed, stuffed into a drawer, and forgotten to gather dust. Your investment plan is not static. When changes in market conditions, or changes in your personal life occur you should review your plan, taking into account present conditions to and determine if those occurrences will affect you from executing to your investment plan overall goal(s).
Investors should periodically go thorough an investment plan Quality Review cycle.
Assess your current financial situation (How accessible, or liquid do you need your investments to be should you need them?)
Define (Re-define if necessary) financial goals (safety, income, and growth)
Determine risk tolerance and time horizon (Are you comfortable with your present level of risk given your time horizon?)
Decide what to invest In (Is what's your portfolio holds meeting your goals?)
Monitor (Is your portfolio tracking properly or do you need to re-balance?)
Wash, Rinse Repeat!!
Life happens, and change in markets occur; New house, New child, Loss of Job, Change of employment, business cycle progresses, and on and on.. Your investment plan should evolve with the changes in your life and yet it's ultimate focus should always be supportive in helping you reach your end goal(s). Understand where you want to get too - Don't be an Alice, It's far far much better to be a Cheshire Cat with a smile and an investment plan.
- Scoot