If you’ve got money to invest, you’ve no doubt thought about your financial future, but a great first step is to try and pin-point exactly where you want your investment to take you.

Are you aiming to achieve a massive return, retire early and live in the lap of luxury? Or are your goals more modest – do you want to spend your after-work years in relative comfort, able to provide for your family, as well as your aged care needs later in life?

The fact is, once you get beyond the dollars and cents, and establish a clear picture of what you want out of your investment, you’ll be more motivated to hone your strategy and stay on track to reach your goals.

Now that you know where you want your investment to take you, you’ll need to think about how much risk you’re willing to tolerate.

Traditionally speaking, the reward for taking on greater risk is the potential for increased return on your investment.

If reaching your investment goal requires a higher rate of return, you need to accept that you may have to open yourself up to more risk. This type of investment will typically include higher risk asset categories such as stocks & bonds.

On the other hand, if you’re looking to restrict your risk, you may choose to look at cash-based investments, such as Term Deposits. Investments of this type are however subject to inflation, with the risk here being that inflation may outpace and erode your returns over time.

If you’re beginning to get a feel for the right type of investments you’ll need to achieve your goals, but you’d like a second opinion, or to ask a few pertinent questions, it never hurts to consult an expert. Find a Financial Planner that you can trust, and discuss your investment options.

As the old saying goes, everything in moderation. The same thing applies to your investment portfolio. Getting the mix right is key.

Relying on a single investment stream can be particularly risky, as if market conditions change, you may not have a back-up plan in place to able to absorb any losses.

By speaking with your expert Financial Planner, and making sure you have the right investment mix, you can remove the ‘single point of failure’ scenario. What’s more, by diversifying, you’re then able to include a portion of your investment for asset categories with higher risk, meaning your return can be higher.

Make sure to stay in regular contact with your Financial Planner about whether your investment mix is right for market conditions, and keep track of how you’re progressing on the road to the return you’re after.