Cash flow Pa. Francis has just retired at age 60. He has been saving part of his income during his entire career and has built up quite a fortune, which he is now planning to live off. He is healthy and not intending to have his ultimate retirement until he reaches at least three digits of age (100 years). So, he would like his capital to last as long as possible.
Bae Jemimah and her husband, boo Tony, are about to expand their little family from two to three, and in about two years, they think it will be necessary to upgrade from their current 2 bedroom flat in Ipaja, into a duplex in the Magodo. They have been renting until this point, so the cash for the house must come from their income. They have been saving for quite a while but still need more to afford the house they’ve set their eyes on.
3 investment objectives
When you are investing, it’s important to always have your primary aim in mind. The primary investment objectives are:
- Capital preservation
- Passive income generation and
- Capital growth
Which objectives do you think Soji, Pa Francis, and Jemimah have? Soji is looking for capital growth, Pa Francis for passive income, and Jemimah for capital preservation. A market investment, or security, can do one of these objectives well, but it often means sacrificing the other two.