Investment Goals

In by Chards1 Comment


Hi Guys,

As a young 20’s or so beginning the journey into investing and saving. I’d like to hear your thoughts on setting investment goals.

You mention that the 8th wonder of the world is compounding interest and that it is the most valuable thing young people have as their advantage against other investors.

My question boils down to how do young people invest in their future when large purchases will be needed in the future. Eg Car, House.

Do you take an approach of invest what you can now and then take it all out when you buy a house or do we try and keep some moving in the markets and keep it hopefully compounding? Or should there be a separate house fund that we save up parallel to the investment funds?

Would like to hear your experiences with this and what strategies you might be taking advantage of.


  • Edit

    Hey Chards,

    Great question, thanks for reaching out. This deserves an extended answer on our next 'Ask Us Anything' episode when we are back on air in mid-Jan. For the meantime, I hope the following helps:

    Alec (Ren) and I both have slightly different approaches to this, but our view overall on stocks is the same - keep them in there for as long as possible and let the magic of compounding and time do the work. You can certainly use stocks as a way to achieve your investment goals, such as buying a house or car, but you're only disadvantaging yourself if you take ALL of your stocks out to make these purchases, as the process of compounding only has to start again.

    Personally, I split mine, like you mention, for example - stocks investment, savings for emergency (cash), savings for a larger asset (split in stocks and cash) etc. These days you can access the market with small amounts of money, so splitting between goals is easier. I'll delve deeper into this when we chat on the episode.

    Hope that helps to get you started thinking.

    Have a great Christmas.