We begin by ensuring adequate provision for necessities, including prudent reserves with protection against common risks. We set objectives for socioeconomic security, major expenditures, enhanced income, tax shelter, and other common purposes. We make specific, measurable, action-oriented, reasonable, and time bound goals. We measure risk-adjusted return for each opportunity utilizing time value of money calculations integrating modern portfolio concepts. We carefully assess potential return and probable risk, estimating life expectancy and business cycles, calculating income taxation, and consider other socioeconomic decisions linked to specific projects consistent with stated goals. We implement our plan trading cash for a series of suitable projects. We continue measuring attitudes, behaviors, outcomes, correlating funding projects working together, and make corrective decisions as required.
Intuitive investing is possible for the individual and institutional investor who has weathered stormy seasons while sailing through to safe harbors. Yet, the seasoned capitalist with compassion for people aligns with evidence that supports planning (Gitman, Joehnk, & Smart, 2011, p.11). Gitman, Joehnk, & Smart suggested following a proven approach by meeting prerequisites, establishing goals, adopting a plan, evaluating opportunities, selecting suitable investments, constructing a diversified portfolio, and managing the portfolio.
Gitman, L.J., Joehnk, D. J., and Smart, S.B. (2011). Fundamentals of Investing (Eleventh Edition). Boston, MA: Prentice Hall.