5 Investment Goals to Set in the New Year

By Miranda Marquit

As the end of the year approaches, many people are trying to figure out which goals to set. Setting the right investment goals can be a huge help as you build wealth next year — and in the future.

Even if you plan to pay down debt and build up your savings next year, you can still set investment goals to improve your financial picture.

5 Investment Goals for the Coming Year

Investing is one of the best ways to build wealth over time. You don’t have to set each of these goals in the coming year. In fact, some of these goals are meant for different stages of your investment journey.

As you plan the coming year, consider the following ideas for making the most of your money.

1. Start investing

If you aren’t already investing, this is the best investment goal you can set. The earlier you start, the better off you’ll be in the long run. Compound returns lead to wealth accumulation over time, so do your best to get in the habit.

You don’t need a lot of money to start investing. In fact, you can start investing with as little as $5 per week. Even if you have debt you’re trying to pay down, consider diverting $5 per week toward investments. In some cases, you can start with an automatic investment into an index ETF to simplify matters.

Consider your situation and goals, and develop a habit of investing in the coming year. You might be surprised at how beneficial it can be.

2. Increase your retirement account withholding

Are you setting aside money for retirement through your employer? If you have a retirement withholding in your paycheck, now is a great time to increase what you’re setting aside. Consider increasing what you set aside based on your goals and how much you can spare.

Some popular formulas for setting aside more in your retirement account include:

  • Increase your withholding by 1%.
  • Have your employer withhold an extra $50 each paycheck

Think about what might work best for you. That investment goal will likely lead to a much higher portfolio balance when you retire. Check out our Wealth Calculator to see the potential difference an increase in retirement withholding could make.

3. Learn about a new type of asset

Maybe you already invest. But what if you could diversify? Experts generally agree that some type of diversity is important in your portfolio. If you’re only investing in one thing, consider learning about a new type of asset.

Setting investment goals to learn new things can help you broaden your horizons and improve your portfolio. Maybe you decide to learn more about bond funds or investing in individual equities to diversify beyond stock funds. Perhaps you’re interested in real estate. Maybe you want to experiment with gold or find out about investing in collectibles.

Once you have a good foundation in one asset class, learning about other types of investments can be one way to improve your portfolio.

4. Review your investment strategy

If you’ve been following the same investment strategy for years, maybe it’s time to take a second look. You might need to tweak your investment goals to reflect your current circumstances better.

This can also include rebalancing. If you’re close to retirement, you might not have changed your asset allocation in decades. Now might be the time to consult with a financial professional or retirement specialist. Take a step back to see where you stand and consider making changes.

Many people set-it-and-forget-it with their investments. That can work well for a time, but eventually, you need to look at your portfolio and make a plan for your money.

5. Experiment

Finally, consider experimenting with your investments in the coming year. You should only do this if you have a solid investment foundation of more traditional assets and are on track to meet your long-term wealth-building goals.

If you have extra cash that you’re not using to dollar-cost average your way into retirement, you might be able to learn about investing and make money through experimentation.

Build on what you learn about other asset classes. Set aside a small amount of money that you can afford to lose and consider experimenting. Maybe you buy cryptocurrencies during the current crypto winter. Perhaps you try trading options. Experimenting can also look like using sites like Fundrise, Masterworks.io, and Vinovest to dip your toe into something new.

Just realize that you could lose the entire amount of your experiment, so be careful.

Bottom Line

No matter where you’re at in your journey, setting investment goals for the new year can help you expand your portfolio and potentially result in higher returns. Think about your goals and financial situation and make it a point to level up your investment game for the coming year.