While everyone wants to see their investments grow in value over time, investment goals and objectives may differ based on your geographic location and age.
From a geographic perspective, more than 71% of respondents in Canada, United States and the United Kingdom indicated that the primary goal for investing was to save for retirement. The main goal of retirement was vastly different in other locations. In the UAE it was saving to start a business or investing for beneficiaries; in China, estate planning. Globally, 56% of respondents indicated that their primary investment objective was to save for retirement, with saving for a large purchase and having emergency funds coming in at 11% and 10%, respectively.
Different generations also show a propensity for different types of investment objectives. Some of this behavior can be explained by baby boomers’ risk tolerance starting to decline as they age, while millennials are able to take on more risk given their longer time horizon in the workplace.
The table below depicts the results from a survey that asked respondents how they would complete the statement, “I want to…” in terms of their investment goals.
Despite the wide array of opinions on the ultimate goal for the money, the key is to have a plan and to stick to that plan in order to reach your goal.
