Understanding investment strategies

Investing without a strategy is like traveling without a map. It can be exhilarating, especially if you have time to spare. You may even end up where you’d hoped to be. But it’s more likely that you’ll find yourself somewhere entirely different.

Conversely, to arrive at a certain place at a certain time, you identify the routes that will take you there and choose the one that seems either the most direct or the most interesting — or maybe the least expensive.

If you’re investing to meet specific financial goals, whether buying a home, sending your children to college, saving for retirement, or anything else that’s important to you, you risk losing your way if you don’t plan ahead. In fact, since you’re likely to have a number of different and potentially competing goals, you’ll need an approach to each of them.

Having a map — or a strategy — doesn’t mean you won’t make an occasional wrong turn or get distracted by something you hadn’t anticipated. But it certainly gives the journey a major boost.