Even though all investors starts investing to create wealth, their investment objective might be different! While some want to “consume” the invested amount in future, some wants to pass-on their investments to their next generation. It is quiet natural tendency among investors
Investing For a Goal( Consume Behavior)– Most of the investors belongs to this category. They invests some “X”amount for a specific period and want to make use of the returns for their future goals. 95-98% of the investors falls under this category.
In this process they became too greedy and wants “instant returns”. Most of the investors can’t reach their goal amount by being greedy in the short-term. Only 1-2% of the investors reaches their goal. It would be possible for them by staying invested patiently. Remaining investors mis-match their goals due to improper implementation of their financial objective. So decide your investment objective and stay invested until you reach your goal
Investing For the Next Generations( Conserve Mentality)– There are many investors who wants to pass-on their wealth to next generations. Surely these mentality investors would create wealth. They don’t destructed by the volatility, in fact they ignore the volatility by investing and forget about their investments.
In this process they neglect the “Primary Basic Rule”- Nomination. They starts investing with nominee but they forget to update/modify nominee(s) according to the life stages/ circumstances of the investor. Hardly 2-3% of the investors updates nominees when ever required while remaining ones even don’t remember his nominee name when they get older.
If you really wants to pass-on your wealth to your desired nominees, please update your nominees frequently as per your life circumstances.
So before investing, decide which category do you fall-
- Conserve Mentality– If you really want to pass-on your wealth to your next generations, update nominees frequently.
- Consume Mentality(Investing for a goal)– Decide your investment objective before investing and stick to your goal until you achieved your goal amount