Thread by @ImcocoMash

I want to talk a little bit about Investment Objectives - I in my journey have 4 investment Objectives. 1, Capital Preservation, 2. Capital Growth, 3. Asset Appreciation and 4. Income Generation (from a appreciating or depreciating asset). #FinancialBunny

Capital Preservation is really when you want your money to only beat inflation. It's much safer than the rest and you might as well call it savings. You avoid risk and volatility #FinancialBunny

Capital Growth is when your approach is to derive returns that beat inflation. So if your money and inflation are at the 100 m start line - you want you money to grow faster than inflation. Compound interest also plays a vital role here. #FinancialBunny

Asset Appreciation is when you invest in the Asset classes and the asset appreciates in value. You buy a property at R500K and in 5 years time its R1million (you'd be so lucky). So the value of your assets grow (stock portfolio, bond portfolio, some commodities, Real Estate)

Income generation is when the investment gives you an income. E.g an investment property that appreciates but also gives you rental income. Some assets that depreciate can also give you an income like a Car that's put to work. the trick is to break even. #FinancialBunny

So when you are choosing to INVEST don't just do it because NJE. this is what you must be able to relay to your FA so they can help you invest in the suitable investment vehicles. #FinancialBunny