A guide to building an investing plan in four steps: set SMART goals, choose the right accounts like a solo 401k, decide your asset allocation, and pick your investments. One speaker walks through each step.
Remember, when you're putting together a written investing plan, the first thing you consider is your goals, right? You make smart goals. Specific, measurable, time bounded goals. Things like I want to have $4 million on January 1, 2037, right in my retirement accounts. That's the sort of goal you want to have that you're working for. Then you choose which accounts you're going to use. In this case, one of the most important accounts is going to be the solo 401k. Next you decide on an asset allocation or mix of types of investments. And maybe you decide, I want 30% US stocks and 20% international stocks and 20% real estate and 30% bonds or something like that, right? So you've decided on the mix of investments. Then finally you select investments that will put your money into those categories, right? To distribute your money among the various asset classes that you want to invest in. You really want to have a plan and you choose the investments to implement the plan in an appropriate way.
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