Your investment strategy defines which portions of your capital you invest in which asset class, such as stocks, ETFs, or bonds. The investment strategy must be optimally tailored to your personal goals, needs, and resources. Several questions are crucial for this:
- what risks you are willing to take,
- which losses you can withstand,
- how long your investment horizon is,
- what experience and knowledge you have,
- how your total assets are structured
- Your current and future income needs and
- what your financial framework looks like, for example your liquidity reserve.
