Open your copy of Learning Tool 5A: Investment Plan Example that you copied before. Make sure you understand the terminology related to investment plans. We will discuss many aspects of this plan in upcoming sections.

You will not have only one portfolio; you will have many portfolios, all of which are important parts of your investment plan. Review your goals and objectives. What are you trying to accomplish individually and as a family through investing? With your investments, what will you be trying to accomplish? Think through your general investment guidelines in Section IIA for both Stage 1 and Stage 2, and fill in those sections.

Next, determine your investment constraints. When will you need money from your investments and why? Now is a good time to think about these needs. Fill out the constraints on Section II.B.1-4. on Liquidity, time horizon, taxes, and unique needs. Your average and marginal tax rates should come from your Tax Planning section.

Finally, determine your funding strategy for Section III.E. How will you save money for investing and saving? What is your goal to save each week or each month? How will you keep your priorities in order? Think through your funding strategy and fill out Section III.E.