Financial Account Framework
Investment objective, liquidity, and time horizon are three variables that can be used as a basis for a financial account framework. Financial accounts are considered those that comprise financial assets and includes bank, brokerage, retirement, education accounts, and others based on personal circumstances.
Investment Objectives
Perhaps the single most important question an investor can ask himself or herself is “what is my investment objective”. The answer to that question serves as the basis underpinning investment decisions and investment objectives can change over time. Let’s take a look at investment objectives for a specific individual’s 401K and over time.