Investment Objectives

Before you even invest , you should take a honest look at your own objectives. This is just some general investment objectives, not  specific needs such as retirement at a certain age or college plans for children . However, there is certainly a correlation between the two, and it is useful to know the characteristics of each of these investment goals:

 •Preservation of capital – you are  more concerned with safety than return. Treasury bills and money market funds may be most appropriate.

•Current income-  you  need a portfolio that produces steady income for current living expenses. Bonds, annuities, and stocks with high dividends (such as utility stocks) may be appropriate.

•Tax-exempt income - the investor's

•Growth and income – you are  looking for a portfolio that generates some amount of income, but you are  looking for capital appreciation as well (often for protection against inflation).

 Appropriate investments could include a mix of bonds and stocks.

•Capital appreciation – your  goal is likely retirement or another event in the future, where growth is required and current income is not needed. A diversified stock or mutual fund portfolio is appropriate.

•Aggressive growth – you are  looking for high-risk investments with a potential for very large returns. This is rarely the goal for an entire portfolio, but rather for a specific portion of assets. Aggressive growth funds and small-cap issues may be most appropriate.