INVESTING FOR GROWTH

Investing for long-term growth is another goal to consider when investing your money.  Growth comes from an investment's price appreciation over time.  Growth-oriented investments pay little, if any, income, but the increase in their value can outpace inflation.  Why would someone want to invest for growth?

To save for retirement  To save for a college education  To buy a house  To provide long-term care for his or her parents

Types of investments well-suited for long-term growth include the following:

Common stocks, including those of small and new companies  Growth mutual funds  Real estate  Collectibles Because of the higher volatility of growth investments, there is a higher reward for those who take that risk.

Now let's review why setting goals is an important part of the investment process.