Investments are TOOLS, and just like any tool you need to know how to use it effectively.

For example, if you are a carpenter you must learn how to hammer and remove nails correctly otherwise you could hurt or injure yourself. You also wouldn’t use a hammer to place a screw otherwise it won’t work.

The same is true for investment instruments, treat it as a set of tools ready for you to use depending on your purpose.

#1 What is your purpose? Target? Timeline? You should have a goal – how much and by when do you want something.

#2 Redeem your investments based on that purpose/goal AND NOT the condition of the market…

#3 The ideal would be is if you meet your goal in time. Redeem when you need it!

#4 If you reach your monetary goal early i.e. in 8 instead of 10 years – then redeem your investment and keep your hard earned and well invested money safe in a savings or time deposit account until you need it. Or you can reinvest all or some of the money, if you can afford to take some risk.

#5 If you reach 10 years but not your monetary goal then you decide whether you will keep it invested or redeem it already, whether the amount is sufficient or not. BUT if you are a prudent investor 1-2-3-4-5 years prior you would have already made adjustments to your investing (i.e. use a different instrument, increase your savings, etc.) so that you can meet your goal. (Remember investments are tools! Sometimes you need to use a small hammer to set a nail in the wall, then drive it in with a big hammer).

Wealth will be within reach if we manage our personal finances well and make money work for us!